Question: Demonstrate the relationship between a firm s marginal revenue function and its relationship to the price elasticity of demand. The demand function for a product

Demonstrate the relationship between a firm

s marginal revenue function and its relationship to the price elasticity of demand. The demand function for a product manufactured by the firm is of the form

= 50 6 .

Determine the price elasticity of demand and marginal revenue at the price of Ksh

8

per unit.

(10

marks

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