Where the demand is unit elastic the marginal revenue will be positive.
A single restaurant is charging a price for ham and eggs where the demand is elastic. Marginal revenue means the revenue that is obtained for selling one more unit of the product. So it means selling one more unit of ham and eggs. As the demand is elastic and one more good is produced the return will be positive.
The more elastic a company is the more the demand for its product will be affected by changes in supply. Therefore, in a competitive market, price elasticity will be directly related to revenue. So as the demand for eggs and ham is price elastic the revenue will also increase in proportion to the demand.
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