1. Use the following demand schedule to determine total revenue and marginal revenuefor each possible level of sales:table below:ProductPrice$222222QuantityDemanded0I23TotalRevenueMarginalRevenue45you conclude about the struct or the industry in which firm isdes.b. Graph the demand, total-revenue, and marginal-revenue curves for this firmc. Why do the demand and marginal-revenue curves coincide?d. "Marginal revenue is the change in total revenue associated with additional units ofoutput." Explain verbally and graphically, using the data in the table.

Total Revenue= Price × Quantity Marginal revenue is the change in total revenue due to sell of one…

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Marginal revenue is the change in total revenue as

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Chapter1: Making Economics Decisions

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Question

1. Use the following demand schedule to determine total revenue and marginal revenue
for each possible level of sales:
table below:
Product
Price
$2
2
2
2
2
2
Quantity
Demanded
0
I
2
3
Total
Revenue
Marginal
Revenue
4
5
you conclude about the struct or the industry in which firm is
des.
b. Graph the demand, total-revenue, and marginal-revenue curves for this firm
c. Why do the demand and marginal-revenue curves coincide?
d. "Marginal revenue is the change in total revenue associated with additional units of
output." Explain verbally and graphically, using the data in the table.

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