#### Question

What is the value of the MR when the demand curve is elastic?

#### Solution

When demand curve is elastic (e_{d} > 1), then according to the relationship `MR =P(1-1/e_d) `, the fraction `1/e_d` will be less than 1.

Hence, MR will be positive when `P (1-1/e_d)` is positive.

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#### APPEARS IN

Solution What is the Value of the Mr When the Demand Curve is Elastic? Concept: Other Non - Perfectly Competitive Markets.