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A single oligopolistic firm charging a price where industry marginal revenue is equal to marginal cost will be tempted to ________ prices, because it faces a more ______ demand if it alone changes its price.A.Raise; inelasticB.Raise; elasticC.Lower; inelasticD.Lower; elastic

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A single oligopolistic firm charging a price where industry marginal revenue is equal to marginal cost will be tempted to Lower prices, because it faces a more elastic demand if it alone changes its price.

What is marginal revenue and cost?

  • The volume of output and the price per unit of a product that would maximise profits are determined by economic metrics such as the marginal cost of production and marginal revenue.
  • The increase in income that comes from selling one more unit of output is known as marginal revenue. Although marginal income can remain constant at a certain level of output, it will eventually start to decline as the output level rises due to the law of diminishing returns.
  • A corporation divides the change in its total revenue by the change in its total production quantity to determine its marginal revenue. The selling price of one more item that was sold makes up marginal income. The marginal revenue formula is shown below: Revenue Change/Quantity Change Equals Marginal Revenue.

Learn more about marginal revenue refer to :

https://brainly.com/question/13444663

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