Marginal revenue can be defined in terms of price (P)and elasticity (ç)as:
A) MR = P($\eta$ + 1/$\eta$).
B) P = MR(1/$\eta$).
C) MR = P$\eta$.
D) MR = P(1 + 1/$\eta$).
E) P = MR(1 - 1/$\eta$).

Question

Quizplus · Accepted Answer

Marginal revenue (MR) can be defined in terms of price (P) and elasticity of demand (η) as MR = P(1 + 1/η). This formula is derived from the relationship between price, marginal revenue, and elasticity of demand. The correct formula reflects how changes in price affect marginal revenue, taking into account the elasticity of demand.

Marginal Revenue Can Be Defined in Terms of Price (P)and η\etaη

Marginal Revenue Can Be Defined in Terms of Price (P)and $\eta$