Using $ \eta $ to represent price elasticity of demand,a simple monopolist will find that its marginal revenue at any point along its demand curve is equal to price at that point multiplied by
A) (1 - 1/$ |\eta| $)
B) 1/$ |\eta| $
C) $ |\eta| $
D) $ |\eta| $*MC

Question

Quizplus · Accepted Answer

Marginal revenue for a monopolist is equal to the price multiplied by (1 minus the inverse of the absolute value of the price elasticity of demand), which is represented by choice A.

Using η \eta η To Represent Price Elasticity of Demand,a Simple Monopolist Will Find

Using $\eta$ To Represent Price Elasticity of Demand,a Simple Monopolist Will Find