# Relationship between Total Revenue, Average Revenue and Marginal Revenue

MR =AR X e -1/e

Where e = price elasticity of demand

Thus, if e=1, MR = 0

If e>1, MR will be positive

If e<1, MR will be negative

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MR =AR X e -1/e

Where e = price elasticity of demand

Thus, if e=1, MR = 0

If e>1, MR will be positive

If e<1, MR will be negative

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