Q273
Marginal revenue will be negative if elasticity of demand is
A.
Less than unity
AnswerB.
More than 1
C.
Equal to 1
D.
Equal to zero
Answer: Option A
Solution
Answer: Option A
Solution:
Marginal revenue will be negative if elasticity of demand is less than unity. At a quantity greater than ON price elasticity on the demand curve, curve is less than one and the marginal revenue is negative.