📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    For a monopolist, price is Rs.16 and marginal

    revenue is Rs.4, the elasticity of demand will be
    A 4/3 Correct Answer Incorrect Answer
    B ¾ Correct Answer Incorrect Answer
    C 4 Correct Answer Incorrect Answer
    D ¼ Correct Answer Incorrect Answer

    Solution

    MR = P[1-(1/Ed)].

    Putting the values in equation, you get PED = 4/3.

    Practice Next
    More Research Questions
    ask-question