Marginal Revenue - Demand Curves
Marginal Revenue becomes negative for a firm faced with a downward-sloping demand curve when:
a) the demand price becomes negative
b) the demand elasticity drops from elastic to inelastic
c) total revenue is maximized
d) the loss on previous units is at is maximum
e) both b and c
https://brainmass.com/economics/microeconomics/marginal-revenue-demand-curves-20230
Solution Preview
Marginal Revenue = Price (1 - 1/|elasticity|)
(Verbally, this says divide one by the absolute value of elasticity. ...
Solution Summary
The marginal revenues to become negative for a firm faced with a downward-sloping demand curves are found.
$2.49