2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help...



2. Calculating marginal revenue from a linear demand curve




The blue curve on the following graph represents the demand curve facing a firm that can set its own prices.

Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.



































Market for Goods







Quantity Demanded

(Units)





Demand Price

(Dollars per unit)















On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, and 40 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results.












Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced.

The marginal revenue of the eighth unit produced is

.






Calculate the total revenue if the firm produces 16 versus 15 units. Then, calculate the marginal revenue of the 16th unit produced.

The marginal revenue of the 16th unit produced is

.







Based on your answers from the previous question, and assuming that the marginal revenue curve is a straight line, use the black line (plus symbol) to plot the firm's marginal revenue curve on the following graph. (Round all values to the nearest increment of 40.)












Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue isnegative   .





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Extracted text: b Search results for '2. Calculat x * MindTap - Cengage Learning X C The Blue Curve On The Follov x 17 QQQ 383.13 v -1.74% Unna x a 10 Steps to Building a Winnir x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090856& E Apps M Gmail YouTube A Maps A clickserve.dartsearc. E Reading list « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 15) Courses O Catalog and Study Tools 2000 A-Z EE Rental Options 1800 Total Revenue P College Success Tips 1800 1400 Career Success Tips A A A 1200 ? Help 1000 O Give Feedback 800 600 400 bongo 200 4 8 12 16 20 24 28 32 36 40 QUANTITY (Number of units) Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced. 12:54 AM P Type here to search L 32% 39°F A O O O 4) 12/7/2021 TO TAL REVENUE (Dollars) x ...
b Search results for '2. Calculat x<br>* MindTap - Cengage Learning X<br>C The Blue Curve On The Follov x<br>17 QQQ 383.13<br>v -1.74% Unna x<br>a 10 Steps to Building a Winnir x +<br>A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090856&<br>E Apps M Gmail<br>YouTube A Maps A clickserve.dartsearc.<br>E Reading list<br>«<br>* CENGAGE MINDTAP<br>Q Search this course<br>Love v<br>A My Home<br>Homework (Ch 15)<br>Courses<br>Graph Input Tool<br>O Catalog and Study Tools<br>Market for Goods<br>A-Z<br>200<br>EE Rental Options<br>I Quantity<br>Demanded<br>(Units)<br>180<br>20<br>P College Success Tips<br>180<br>Demand Price<br>(Dollars per unit)<br>140<br>100.00<br>Career Success Tips<br>120<br>100<br>? Help<br>80<br>O Give Feedback<br>60<br>Demand<br>40<br>20<br>8<br>12<br>16 20<br>24 28 32 36 40<br>bongo<br>QUANTITY (Units)<br>On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8,<br>16, 20, 24, 32, and 40 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green<br>12:53 AM<br>O Type here to search<br>32%<br>39°F<br>O O D 4)<br>12/7/2021<br>x ...<br>近<br>PRICE (Dollars per unit)<br>

Extracted text: b Search results for '2. Calculat x * MindTap - Cengage Learning X C The Blue Curve On The Follov x 17 QQQ 383.13 v -1.74% Unna x a 10 Steps to Building a Winnir x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090856& E Apps M Gmail YouTube A Maps A clickserve.dartsearc. E Reading list « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 15) Courses Graph Input Tool O Catalog and Study Tools Market for Goods A-Z 200 EE Rental Options I Quantity Demanded (Units) 180 20 P College Success Tips 180 Demand Price (Dollars per unit) 140 100.00 Career Success Tips 120 100 ? Help 80 O Give Feedback 60 Demand 40 20 8 12 16 20 24 28 32 36 40 bongo QUANTITY (Units) On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, and 40 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green 12:53 AM O Type here to search 32% 39°F O O D 4) 12/7/2021 x ... 近 PRICE (Dollars per unit)
Jun 09, 2022
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