What is the marginal revenue when price elasticity of demand is 1?

CA Foundation · Business Economics · MTP · September 2025
What is the marginal revenue when price elasticity of demand is 1?
(A) A. Equal to price
(B) B. Equal to zero
(C) C. Equal to AR
(D) D. Maximum

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Equal to zero

Topics: Price Determination in Different Markets

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