2. Calculating marginal revenue from a linear demand curveThe 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 . b Search results for '2. Calculat x* MindTap - Cengage Learning XC The Blue Curve On The Follov x17 QQQ 383.13 v -1.74% Unna xa 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 GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 15)CoursesO Catalog and Study Tools2000A-ZEE Rental Options1800Total RevenueP College Success Tips18001400Career Success TipsA A A1200? Help1000O Give Feedback800600400bongo200481216202428323640QUANTITY (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 AMP Type here to searchL32%39°FA O O O 4)12/7/2021TO TAL REVENUE (Dollars)x ... b Search results for '2. Calculat x* MindTap - Cengage Learning XC The Blue Curve On The Follov x17 QQQ 383.13v -1.74% Unna xa 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 GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 15)CoursesGraph Input ToolO Catalog and Study ToolsMarket for GoodsA-Z200EE Rental OptionsI QuantityDemanded(Units)18020P College Success Tips180Demand Price(Dollars per unit)140100.00Career Success Tips120100? Help80O Give Feedback60Demand402081216 2024 28 32 36 40bongoQUANTITY (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 green12:53 AMO Type here to search32%39°FO O D 4)12/7/2021x ...近PRICE (Dollars per unit)

Total revenue= Price×QuantityPrice Quantity Total Revenue 0 200 0 8 160 1280 16 120 1920 20 100 2000 24 80 1920 32 40 1280 40 0 0 The marginal revenue of the 8th unit produced is $125;because;When 7 units produced, TR=165×7=$1155When 8 units produced, TR=160×8=$1280MR=∆TR∆QMR=1280-11558-7MR=$125MR of the 16th unit produced is $45;because;when 15 units produced, TR=$125×15=$1875When 16 units produced, TR=$120×16=$1920MR=1920-187516-15MR=$45 TR will be maximum at MR equal 0.Answer: MR on 8th unit is $125 MR on 16th unit is $45.

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.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 .

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 ...

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