The Relationship between AR, MR and Price Elasticity –

CA Foundation · Business Economics · MTP · June 2024
The Relationship between AR, MR and Price Elasticity –
(A) A. MR = AR X e-1 ÷ e
(B) B. AR = MR X e-1 ÷e
(C) C. AR – MR = e-1 ÷e
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. MR = AR X e-1 ÷ e

Topics: Price Determination in Different Markets

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