1. What is MR ’s numerical value when dd has unitary elasticity? Explain

2.  Explain the error in the following statement: “A fi rm out to maximize its profits will always charge the highest price that the traffic will bear.” State the correct result, and use the concept of marginal revenue to explain the difference between the correct and the erroneous statements.
 
 

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1 Mr Rs numerical value when the demand has unitary elasticity is one For unitary elasticity demand ... View the full answer