1. The table that follows gives price and corresponding quantity demanded data for a firm. a. Complete the table by finding total revenue and arc marginal revenue. b. Plot the demand curve, the total revenue curve, and the arc marginal revenue curve. Note that the arc marginal revenue between two lev- els of output should be plotted midway between the two levels. c. Find the price elasticity of demand between P = $35 and P = $30 and $10. In which price range is it more elastic? between P=$15 and P = ARC P Q TR MR $40 0 0 35 5 175 30 10 300 25 15 375 20 20 400 15 25 375 10 30 300 5 35 175 0 40 0
1. The table that follows gives price and corresponding quantity demanded data for a firm. a. Complete the table by finding total revenue and arc marginal revenue. b. Plot the demand curve, the total revenue curve, and the arc marginal revenue curve. Note that the arc marginal revenue between two lev- els of output should be plotted midway between the two levels. c. Find the price elasticity of demand between P = $35 and P = $30 and $10. In which price range is it more elastic? between P=$15 and P = ARC P Q TR MR $40 0 0 35 5 175 30 10 300 25 15 375 20 20 400 15 25 375 10 30 300 5 35 175 0 40 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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