Suppose that Nathan Juarez is the only seller of kumquats in a small town. The following graph shows the demand and marginal revenue (MR) curves facing Nathan. You can use the red rectangle labelled Total Revenue (cross symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, scroll over the shaded area with your mouse. You will not be scored on where you place the rectangle. PRICE (Dollars per basket) 10 9 8 7 6 5 4 3 2 1 0 Total Revenue MR Demand 4 8 12 16 20 24 28 32 36 40 QUANTITY (Thousands of basketsper year] Help Clear All On the following graph, use the green points (triangle symbol) to plot annual total revenue at prices of $7, $6, $5, $4, $3, $2, and $1 per basket of kumquats. Be sure to use all of the points provided. Line segments will automatically connect the points. Then, consider the quantity of kumquats at which Nathan Juarez's marginal revenue exactly equals zero. Place a grey point (star symbol) on the total revenue curve to indicate this quantity. Drop lines will automatically extend to both axes.
Suppose that Nathan Juarez is the only seller of kumquats in a small town. The following graph shows the demand and marginal revenue (MR) curves facing Nathan. You can use the red rectangle labelled Total Revenue (cross symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, scroll over the shaded area with your mouse. You will not be scored on where you place the rectangle. PRICE (Dollars per basket) 10 9 8 7 6 5 4 3 2 1 0 Total Revenue MR Demand 4 8 12 16 20 24 28 32 36 40 QUANTITY (Thousands of basketsper year] Help Clear All On the following graph, use the green points (triangle symbol) to plot annual total revenue at prices of $7, $6, $5, $4, $3, $2, and $1 per basket of kumquats. Be sure to use all of the points provided. Line segments will automatically connect the points. Then, consider the quantity of kumquats at which Nathan Juarez's marginal revenue exactly equals zero. Place a grey point (star symbol) on the total revenue curve to indicate this quantity. Drop lines will automatically extend to both axes.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 9QP
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