When the Price Elasticity of Demand Is Less Than 1

question 66

Multiple Choice

When the price elasticity of demand is less than 1, then marginal revenue is

• A)equal to 0.
• B)positive.
• C)negative.
• D)greater than 1.
• E)infinity.

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Definitions:

Maximum Points

Refers to the highest value or peak point that can be achieved within a given set of parameters or conditions.

Total Economic Profit

The sum of accounting profit and economic profit, which measures the total earnings of a company after accounting for both explicit and implicit costs.

Profitable Level

The point at which the revenue from sales exceeds the costs involved in production or procurement.

Market Price

Market Price is the current price at which a good or service can be bought or sold in a marketplace.