Total revenue from the sale of a commodity is given by , where is the quantity of the commodity. Hence, the point elasticity of demand, when marginal revenue is 20, is
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4 marks, −1MicroeconomicsMonopoly and price discriminationMonopoly equilibrium and marginal revenueModerateabout 2 min
JNU SIS 2014 Question 9: Monopoly and price discrimination
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Total revenue from the sale of a commodity is given by R = 100x - 2x², where x is the quantity of the commodity. Hence, the point elasticity of demand, when marginal revenue is 20, is (A) -0· 5 (B) -1 (C) -1· 5 (D) -2
Also written as: Total revenue from the sale of a commodity is given by R = 100x - 2x^2, where x is the quantity of the commodity. Hence, the point elasticity of demand, when marginal revenue is 20, is
Monopoly and price discrimination has come up 128 times in 7 exams since 2004.
What this question tests
This question is on Monopoly equilibrium and marginal revenue, part of Monopoly and price discrimination in Microeconomics.
How a monopolist sets price and output where marginal revenue equals marginal cost.
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