36 40 2000 1800 1600 1400 1200 1000 800 600 400 200 0 TOTAL REVENUE (Dollars) 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. 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.) Marginal Revenue 0 4 8 200 160 120 80 40 ཆ ཤ ཤྲཱ ཋ ཟླ ཨྰ # ༞ བྷྲ ༔ བྷྲ ཐྰ ྴ。 ྴ 12 16 20 24 28 32 36 40 0 -40 MARGINAL REVENUE (Dollars) QUANTITY (Units) Comparing your total - revenue graph to your marginal - revenue graph, you can see that total revenue is at the output at which marginal revenue is equal to zero. 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. 0 4 8 12 16 20 24 28 32 36 40 200 180 160 140 120 100 80 60 40 20 0 PRICE (Dollars per unit) QUANTITY (Units) Demand Graph Input Tool Market for Goods Quantity Demanded (Units) 20 Demand Price (Dollars per unit) 100.00 On the previous graph, 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, or 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. Total Revenue 0 4 8 12 16 20 24 28 32
36 40 2000 1800 1600 1400 1200 1000 800 600 400 200 0 TOTAL REVENUE (Dollars) 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. 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.) Marginal Revenue 0 4 8 200 160 120 80 40 ཆ ཤ ཤྲཱ ཋ ཟླ ཨྰ # ༞ བྷྲ ༔ བྷྲ ཐྰ ྴ。 ྴ 12 16 20 24 28 32 36 40 0 -40 MARGINAL REVENUE (Dollars) QUANTITY (Units) Comparing your total - revenue graph to your marginal - revenue graph, you can see that total revenue is at the output at which marginal revenue is equal to zero. 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. 0 4 8 12 16 20 24 28 32 36 40 200 180 160 140 120 100 80 60 40 20 0 PRICE (Dollars per unit) QUANTITY (Units) Demand Graph Input Tool Market for Goods Quantity Demanded (Units) 20 Demand Price (Dollars per unit) 100.00 On the previous graph, 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, or 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. Total Revenue 0 4 8 12 16 20 24 28 32
Chapter1A: Appendix: Working With Graphs
Section: Chapter Questions
Problem 1E
Question
not use ai please don't
Transcribed Image Text:36
40
2000
1800
1600
1400
1200
1000
800
600
400
200
0
TOTAL REVENUE (Dollars)
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.
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.)
Marginal Revenue
0
4
8
200
160
120
80
40
ཆ ཤ ཤྲཱ ཋ ཟླ ཨྰ # ༞ བྷྲ ༔ བྷྲ ཐྰ ྴ。 ྴ
12
16
20
24
28
32
36
40
0
-40
MARGINAL REVENUE (Dollars)
QUANTITY (Units)
Comparing your total - revenue graph to your marginal - revenue graph, you can see that total revenue is at the output at which
marginal revenue is equal to zero.
Transcribed Image Text: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.
0
4
8
12
16
20
24
28
32
36
40
200
180
160
140
120
100
80
60
40
20
0
PRICE (Dollars per unit)
QUANTITY (Units)
Demand
Graph Input Tool
Market for Goods
Quantity Demanded
(Units)
20
Demand Price
(Dollars per unit)
100.00
On the previous graph, 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, or 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.
Total Revenue
0
4
8
12
16
20
24
28
32
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
