The textbook says :
MR = P[1-(1/E)] (when E is price elasticity.)
However, I cannot understand the equation.
As MR=P+Q(△P/△Q) and E=(P/Q)(△Q/△P), isn’t it the correct equation that MR=P[1+(1/E)], not MR = P[1-(1/E)]?
They are same. Just remember the signal of E
“Signal”?
Sign, perhaps?
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Noted.