Given that P is the unit price of a good, Ep is the price elasticity of demand, and MR is the marginal revenue. Show that the relationship that connects MR,P, and Ep is MR=P(1-1/Ep)
Ed = (∂Q/∂P)P/Q,
TR = P(Q)×Q,
"\u2202TR\/\u2202Q = (\u2202P\/\u2202Q)\u00d7Q + (\u2202Q\/\u2202Q)\u00d7P"
MR = (∂P/∂Q)×Q + P,
divide and multiply by P:
MR = [(∂P/∂Q)Q/P]×P + P,
MR = [1/Ed ]×P + P,
"MR = P\u00d7(1 + 1\/Ed\n)."
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