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In case the demand elasticity under imperfect competition is unity, the marginal revenue will be
  • a)
    More than utility, but less than infinity.
  • b)
    Equal to unity.
  • c)
     Equal to zero
  • d)
    Less than unity, but more than zero.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In case the demand elasticity under imperfect competition is unity, th...
Demand elasticity means how much quantity demanded will change if another factor changes.
If demand elasticity is unity, it means that elasticity (e) = 1 and when demand elasticity in imperfect competition is unity than marginal revenue (increase in revenue due to sell of one additional unit) will be equal to Zero.
Thus, correct answer is equal to Zero.
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Community Answer
In case the demand elasticity under imperfect competition is unity, th...
Demand elasticity means how much quantity demanded will change if another factor changes.
If demand elasticity is unity, it means that elasticity (e) = 1 and when demand elasticity in imperfect competition is unity than marginal revenue (increase in revenue due to sell of one additional unit) will be equal to Zero.
Thus, correct answer is equal to Zero.
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In case the demand elasticity under imperfect competition is unity, the marginal revenue will bea)More than utility, but less than infinity.b)Equal to unity.c)Equal to zerod)Less than unity, but more than zero.Correct answer is option 'C'. Can you explain this answer?
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