The Relationship Between Marginal Revenue and Elasticity Is

question 230

Multiple Choice

The relationship between marginal revenue and elasticity is

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

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