What is the value of the MR when the demand curve is elastic?

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Muskan Anand

2 years ago

When demand curve is elastic (ed > 1), then according to the relationship MR = P(1 - 1/ed), the fraction 1/ed will be less than 1. Hence, MR will be positive when P(1 - 1/ed) is positive. AR or demand curve will never be 0 as TR is always positive.

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