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 folowing questions. You will not be graded on any changes you make this graph. Note: Once you enter a value in a white fleld, the graph and any corresponding amounts in each grey fleld will change accordingly. Graph Input Tool Market for Goods 200 180 Quantity Demanded 20 160 (Units) I 140 Demand Price (Dollars per unit) 100.00 * 120 100 80 60 Demand 40 20 4 8 12 16 20 24 28 32 36 40 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 points (triangle symbol) to plot the results. (? 2000 1800 Total Revenue 1600 1400 1200 1000 800 600 400 200 4 12 16 20 24 28 32 36 40 QUANTITY (Number of units) Calculate the total revenue ir 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 s 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 ine, use the black Nne (plus symbol) to plot the firm's marginal revenue curve on the following graph. (Round all values to the nearest increment of 40.) 200 160 Marginal Revenue 120 B0 40 40 12 16 20 QUANTITY (Units) 4 24 28 32 36 40 Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue is TOTAL REVENUE (Dollars)
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 folowing questions. You will not be graded on any changes you make this graph. Note: Once you enter a value in a white fleld, the graph and any corresponding amounts in each grey fleld will change accordingly. Graph Input Tool Market for Goods 200 180 Quantity Demanded 20 160 (Units) I 140 Demand Price (Dollars per unit) 100.00 * 120 100 80 60 Demand 40 20 4 8 12 16 20 24 28 32 36 40 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 points (triangle symbol) to plot the results. (? 2000 1800 Total Revenue 1600 1400 1200 1000 800 600 400 200 4 12 16 20 24 28 32 36 40 QUANTITY (Number of units) Calculate the total revenue ir 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 s 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 ine, use the black Nne (plus symbol) to plot the firm's marginal revenue curve on the following graph. (Round all values to the nearest increment of 40.) 200 160 Marginal Revenue 120 B0 40 40 12 16 20 QUANTITY (Units) 4 24 28 32 36 40 Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue is TOTAL REVENUE (Dollars)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
this is all one homework question.
Transcribed Image Text: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 fleld, the graph and any corresponding amounts In each grey fleld will change accordingly.
Graph Input Tool
Market for Goods
200
180
Quantity
Demanded
(Units)
20
160
140
Demand Price
(Dollars per unit)
100.00
120
100
80
60
Demand
40
20
0 4 8 12 16 20 24 28 32 36 40
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 folowing graph, use the green
points (triangle symbol) to plot the results.
(?
2000
1800
Total Revenue
1600
1400
1200
1000
800
600
400
200
4
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 elghth unit produced.
The marginal revenue of the elghth 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 Nne, use the black Nne (plus symbol)
to plot the fim's marginal revenue curve on the following graph, (Round all values to the nearest Increment of 40.)
200
160
Marginal Revenue
120
40
-40
12 16 20 24 28
QUANTITY (Units)
4
32 36 40
Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue is
OTAL REVENUE (Dollars)
PRICE (Dollars per u
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