If demand facing the firm is price-inelastic,marginal revenue will be:
A)positive.
B)zero.
C)negative.
D)constant.

Question

Quizplus · Accepted Answer

If demand facing the firm is price-inelastic, it means that the change in price will not have a significant impact on the quantity demanded. As a result, if the firm lowers the price, the increase in revenue from selling more goods will not be enough to offset the decrease in revenue from charging a lower price. This means that the marginal revenue will be negative.

If Demand Facing the Firm Is Price-Inelastic,marginal Revenue Will Be