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If the Average Revenue Curve Facing a Firm Is Downward

Question 47

Multiple Choice

If the average revenue curve facing a firm is downward sloping to the right, the price elasticity of demand will be different at different prices. Marginal revenue (MR) will be zero at the price where price elasticity of demand is:


A) equal to 1
B) maximised
C) minimised
D) none of the above

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