Question

Indicate whether the following statements are true​ (T) or false​ (F). nothing​: When the marginal revenue is​ positive, demand is elastic. nothing​: If the firm raises the price in the elastic range of​ demand, total revenue will increase. nothing​: When demand is unit​ elastic, marginal revenue​ = 1. nothing​: When the total revenue is​ increasing, demand is elastic. nothing​: The absolute value of the price elasticity of demand increases as you move down the demand curve.

Answer 1

Answer:

1) True, because MR = P[1-1/e] demand is elastic if e> 1. Thus for e>1 MR is positive.

2) False, because for elastic demand increase in price will lead to fall in revenue.

3) False, because MR will be zero.( MR = P[1-1/e], put e = 1)

4) True, because MR will be positive

5) FaIse