If , (I'm assuming that is not 2.718... ), the result would be correct, but otherwise I'm with you.
Also, if is positive, would be needed to make positive. Should it be ?
This is from my economics class lecture. Can someone explain how the last part (in yellow box) is done? How was the answer obtained?
Since one of the limits of the integration is infinite, this is an improper integral. So, i thought that since [P^(e+1)]/(e+1) approaches infinity when P approaches infinity, the integral diverges and is meaningless.
The above is an example in a monopoly market. Thus, e<-1 because a monopoly will choose to operate only in regions in which the market demand curve is elastic.