The Relationship Between Marginal Revenue and Elasticity Is

question 121

Multiple Choice

The relationship between marginal revenue and elasticity is

• A) that total revenue equals zero at the quantity for which the demand is unit elastic.
• B) whenever the elasticity is negative, marginal revenue is positive.
• C) whenever the elasticity is positive, marginal revenue is positive.
• D) when demand is elastic, marginal revenue is negative and when demand is inelastic, marginal revenue is positive.
• E) when demand is elastic, marginal revenue is positive and when demand is inelastic, marginal revenue is negative.

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Definitions:

Physiological Forces

Factors related to the physical and biological functions of organisms that affect behavior, health, and well-being.

Unconscious Fears

Fears that reside within the unconscious mind, affecting behavior and thought processes without the individual's awareness.

Cultural Norms

Are the shared expectations and rules that guide behavior of people within social groups.

Constructs

Psychological categories or concepts that represent behaviors or experiences, often used to understand and predict human actions and attitudes.