If η=.8 and P=$25,what is MR?
A)$20
B)$6.25
C)-$5
D)-$6.25
E)$5

Name: If η=.8 and P=$25,what is MR? A)$20 B)$6.25 C)-$5 D)-$6.25 E)$5
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Question

Quizplus · Accepted Answer

To calculate MR, we use the formula MR = P(1-η), where η is the price elasticity of demand. Plugging in the given values, we get MR = $25(1-0.8) = -$5. Therefore, the best choice is D (-$6.25), which is the closest answer choice to -$5.

If η=.8 and P=$25,what Is MR