Recent content by idempotency

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    Using calculus to prove a relation between demand elasticity and AR, MR

    o you - that's dumb... :S
  2. I

    Using calculus to prove a relation between demand elasticity and AR, MR

    Hi all, The problem asks to prove: e_{Q,P} = \frac{AR}{AR-MR} In which AR is average revenue and MR is marginal revenue. Then verify this for demand equation p = a-bx I developed several steps: \begin{flalign*}AR = \frac{TR(Q)}{Q} ; MR = \frac{dTR(Q)}{dQ} \\* \frac{AR}{AR-MR}...