4. Study Questions and Problems #4 The market equilibrium price for wheat is $4 per bushel. On the following graph, use the green line (triangle symbol) to plot the marginal revenue curve for a typical wheat farmer. Use the orange line (square symbol) to plot the total revenue curve for this farmer. TOTAL REVENUE & MARGINAL REVENUE (Dollars per bushel) 60 + 2 3 4 B QUANTITY (Bushels) 10 Marginal Revenue 0 Total Revenue ? True or False: Marginal revenue is the change in total revenue per bushel. In this case, $4 is the marginal revenue that remains constant and equal to price. True False

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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4. Study Questions and Problems #4
The market equilibrium price for wheat is $4 per bushel.
On the following graph, use the green line (triangle symbol) to plot the marginal revenue curve for a typical wheat farmer. Use the orange line (square
symbol) to plot the total revenue curve for this farmer.
TOTAL REVENUE & MARGINAL REVENUE (Dollars per bushel)
60
+
2
3
4
B
QUANTITY (Bushels)
10
Marginal Revenue
0
Total Revenue
?
True or False: Marginal revenue is the change in total revenue per bushel. In this case, $4 is the marginal revenue that remains constant and equal to
price.
True
False
Transcribed Image Text:4. Study Questions and Problems #4 The market equilibrium price for wheat is $4 per bushel. On the following graph, use the green line (triangle symbol) to plot the marginal revenue curve for a typical wheat farmer. Use the orange line (square symbol) to plot the total revenue curve for this farmer. TOTAL REVENUE & MARGINAL REVENUE (Dollars per bushel) 60 + 2 3 4 B QUANTITY (Bushels) 10 Marginal Revenue 0 Total Revenue ? True or False: Marginal revenue is the change in total revenue per bushel. In this case, $4 is the marginal revenue that remains constant and equal to price. True False
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