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What is the relationship between price elasticity of demand and the monopolist's revenue?
Wiki User
∙ 11y ago
marginal revenue is negative where demand is inelastic
Wiki User
∙ 11y ago
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How to use the concept of price elasticity of demand to maximize revenue?
Price elasticity of demand is a way to determine marginal revenue. Optimal revenue and, more importantly, optimal profit will occur to the point when marginal revenue = marginal cost, or the price elasticity of demand < 1.
How does elasticity of demand influence tax revenue?
Elasticity of demand influenced tax revenues
What will be the elasticity when marginal revenue is zero?
unit elastic
What is the total revenue test for elasticity?
I assume that when you say "elasticity," you mean "price elasticity of demand."Raise price a little. If total revenue goes up, you're in the INELASTIC region (where absolute value of elasticity is greater than 1). If it goes down, you're in the ELASTIC region.
What is the relationship between total average and marginal revenue under monopoly with the help of schedule and diagram?
Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.
Demonstrate the Relationship between elasticity and totoal revenue?
how government use the elasticity concept to genrate revenue
Where is lake maricibo?
with example explain the concept of of elasticity of supply and interpretating the result graphical and descuse the relationship between price elasticity and suppliers total revenue
How to use the concept of price elasticity of demand to maximize revenue?
Price elasticity of demand is a way to determine marginal revenue. Optimal revenue and, more importantly, optimal profit will occur to the point when marginal revenue = marginal cost, or the price elasticity of demand < 1.
How does elasticity of demand influence tax revenue?
Elasticity of demand influenced tax revenues
What will be the elasticity when marginal revenue is zero?
unit elastic
What is the total revenue test for elasticity?
I assume that when you say "elasticity," you mean "price elasticity of demand."Raise price a little. If total revenue goes up, you're in the INELASTIC region (where absolute value of elasticity is greater than 1). If it goes down, you're in the ELASTIC region.
What is the relationship between total average and marginal revenue under monopoly with the help of schedule and diagram?
Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.
How did the American revenue act affect the relationship between England and the colonies?
How did the American Revenue Act affect colonial economies?
How revenue method applied in calculating price elasticity of demand?
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What was the relationship between mansab and jagir in mughal empire?
In the Mughal Empire, mansab was a system of ranking used to determine the status of nobles, while jagir was a land grant given to nobles in exchange for military service. Mansab determined the rank and salary of the noble, while jagir provided them with a source of income and allowed them to maintain a contingent of soldiers.
Establish the relationship between average revenue and marginal revenue and elasticity of demand?
Price elasticity of demand is defined as the measure of responsivenesses in the quantity demanded for a commodity as a result of change in price of the same commodity.In other words, it is percentage change in quantity demanded as per the percentage change in price of the same commodity. In economics and business studies, the price elasticity of demand (PED) is a measure of the sensitivity of quantity demanded to changes in price. It is measured as elasticity, that is it measures the relationship as the ratio of percentage changes between quantity demanded of a good and changes in its price. Drinking water is a good example of a good that has inelastic characteristics in that people will pay anything for it (high or low prices with relatively equivalent quantity demanded), so it is not elastic. On the other hand, demand for sugar is very elastic because as the price of sugar increases, there are many substitutions which consumers may switch to. In microeconomics, Marginal Revenue (MR) is the extra revenue that an additional unit of product will bring. It can also be described as the change in total revenue/change in number of units sold. More formally, marginal revenue is equal to the change in total revenue over the change in quantity when the change in quantity is equal to one unit (or the change in output in the bracket where the change in revenue has occurred) This can also be represented as a derivative. (Total revenue) = (Price Demanded) times (Quantity)
What determines how a change in prices will affect total revenue for a company?
values of elasticity
