The average revenue \(R_A\) is 50 and elasticity of demand \(\eta\) is 5, the marginal revenue \(R_M\) is _____.
Q.1 (C) (i) The average revenue \(R_A\) is 50 and elasticity of demand \(\eta\) is 5, the marginal revenue \(R_M\) is _____.
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Answer: 40
\(R_M=R_A\left(1-\frac{1}{\eta}\right)=50\left(1-\frac{1}{5}\right)=50\times\frac{4}{5}=40\).
Doubtly AI
· 28 Oct 2026
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