New Click here to Enroll in NaBFID Analyst Intro Class on May 6

    Question

    Ed=1 i. MR is negative Ed>1 ii. MR=0 Ed<1 iii. MR is positive
    A a) i, b) ii, c) iii Correct Answer Incorrect Answer
    B a) ii, b) iii, c) i Correct Answer Incorrect Answer
    C a) iii, b) i, c) i Correct Answer Incorrect Answer
    D a) i, b) iii, c) ii Correct Answer Incorrect Answer
    E a) ii, b) i, c) iii Correct Answer Incorrect Answer

    Solution

    TR is constant when Ed = 1. So, MR=0. When PED is elastic, TR increases so, MR is positive. When PED is inelastic, TR decreases so, MR is negative.

    Practice Next