Compute the marginal revenue when the price elasticity of demand is -0.25.
A) -3P, meaning marginal revenue is negative and 3 times less than price.
B) 3P, meaning marginal revenue is positive and 3 times greater than price.
C) -0.33P, meaning that marginal revenue is negative and one-third of the price.
D) -0.25P, meaning that marginal revenue is negative and one-fourth of the price.
Correct Answer:
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