Compute the Marginal Revenue When the Price Elasticity of Demand

question 135

Multiple Choice

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.

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Definitions:

Subliminal Persuasion

A method of influencing people's attitudes, behaviors, or decisions by presenting messages below the threshold of conscious awareness.

Subliminal Perception

The processing of information by sensory systems without conscious awareness.

Sensory Nerves

Nerves that transmit sensory information from the body's periphery toward the central nervous system, allowing for the perception of stimuli.

Neural Impulse

The electrical signal that travels along the axon of a neuron, allowing for communication between neurons.