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    Question

    For a monopolist, price is Rs.16 and marginal revenue is Rs.4, the elasticity of demand will be

    A 4/3 Correct Answer Incorrect Answer
    B ¾ Correct Answer Incorrect Answer
    C 4 Correct Answer Incorrect Answer
    D ¼ Correct Answer Incorrect Answer

    Solution

    MR = P[1-(1/Ed)].

    Putting the values in equation, you get PED = 4/3.

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