Compute the Marginal Revenue When the Price Elasticity of Demand

question 36

Multiple Choice

Compute the marginal revenue when the price elasticity of demand is −0.10.

• A) −9P, meaning marginal revenue is negative and 9 times greater than price.
• B) 9P, meaning marginal revenue is positive and 9 times greater than price.
• C) −3P, meaning marginal revenue is negative and 3 times greater than price.
• D) 3P, meaning marginal revenue is positive and 3 times greater than price.

---

Definitions:

Fundamental Components

Basic elements or parts that are essential to the structure or functioning of a system or concept.

Criterion Test Bias

The presence of systematic differences in test performance among groups not attributable to the abilities or qualities the test intends to measure.

Bias

A condition which occurs when aspects of the test or test delivery unfairly penalize test takers due to personal characteristics.

Testing

The process of administering a test to measure an individual's abilities, skills, intelligence, or other attributes.