ollars) 6. Study Questions and Problems #6 In the following table, which contains the demand schedule for a monopolist, enter the total revenue (TR) and marginal revenue (MR) for each price. For each price-quantity combination (that is, table row), indicate whether demand is elastic, unitary elastic, or inelastic at that point on the demand curve. Hint: Do not calculate the price elasticity of demand mathematically. Instead, use what you know about elasticity along different segments of a linear demand curve to determine the elasticity of each price-quantity combination. Price (P) Total Revenue (TR) (Dollars) Quantity Demanded (Q) (Dollars) Marginal Revenue (MR) (Dollars) Price Elasticity of Demand 8.00 0 7.20 1 6.40 2 5.60 3 4.80 4 4.00 5 3.20 6 2.40 7 1.60 8 0.80 0.00 9 10 Using the data from the demand schedule, plot the demand and marginal revenue curves on the following graph. Use the blue points (circle symbol) to plot the demand curve and the purple points (diamond symbol) to plot marginal revenue curve. Plot the points from left to right in the order in which you want them to appear. Line segments will connect automatically. Note: Be sure to plot marginal values between the appropriate whole unit values. For example, the first point on your marginal revenue curve (representing the marginal revenue of the first unit) should be plotted at a value of 0.5 on the horizontal axis, and the dollar value of the marginal value on the vertical axis: (0.5, $7.20). 6 Demand Marginal Revenue TOTAL REVENUE (Dollars) PRICE (Dollars) -4 -6 4 8 6 -8 0 1 2 3 4 5 6 7 8 9 10 11 Quantity (Units) Demand Marginal Revenue Using the data from the demand schedule, plot the total revenue curve on the following graph. Use the green points (triangle symbol) to plot the points from left to right in the order in which you want them to appear. Line segments will connect automatically. Hint: Do not forget to plot the point corresponding to a price of $0. 24 22 20 18 16 14 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 8 9 10 11 QUANTITY (Units) Total Revenue
ollars) 6. Study Questions and Problems #6 In the following table, which contains the demand schedule for a monopolist, enter the total revenue (TR) and marginal revenue (MR) for each price. For each price-quantity combination (that is, table row), indicate whether demand is elastic, unitary elastic, or inelastic at that point on the demand curve. Hint: Do not calculate the price elasticity of demand mathematically. Instead, use what you know about elasticity along different segments of a linear demand curve to determine the elasticity of each price-quantity combination. Price (P) Total Revenue (TR) (Dollars) Quantity Demanded (Q) (Dollars) Marginal Revenue (MR) (Dollars) Price Elasticity of Demand 8.00 0 7.20 1 6.40 2 5.60 3 4.80 4 4.00 5 3.20 6 2.40 7 1.60 8 0.80 0.00 9 10 Using the data from the demand schedule, plot the demand and marginal revenue curves on the following graph. Use the blue points (circle symbol) to plot the demand curve and the purple points (diamond symbol) to plot marginal revenue curve. Plot the points from left to right in the order in which you want them to appear. Line segments will connect automatically. Note: Be sure to plot marginal values between the appropriate whole unit values. For example, the first point on your marginal revenue curve (representing the marginal revenue of the first unit) should be plotted at a value of 0.5 on the horizontal axis, and the dollar value of the marginal value on the vertical axis: (0.5, $7.20). 6 Demand Marginal Revenue TOTAL REVENUE (Dollars) PRICE (Dollars) -4 -6 4 8 6 -8 0 1 2 3 4 5 6 7 8 9 10 11 Quantity (Units) Demand Marginal Revenue Using the data from the demand schedule, plot the total revenue curve on the following graph. Use the green points (triangle symbol) to plot the points from left to right in the order in which you want them to appear. Line segments will connect automatically. Hint: Do not forget to plot the point corresponding to a price of $0. 24 22 20 18 16 14 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 8 9 10 11 QUANTITY (Units) Total Revenue
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:ollars)
6. Study Questions and Problems #6
In the following table, which contains the demand schedule for a monopolist, enter the total revenue (TR) and marginal revenue (MR) for each price.
For each price-quantity combination (that is, table row), indicate whether demand is elastic, unitary elastic, or inelastic at that point on the demand
curve.
Hint: Do not calculate the price elasticity of demand mathematically. Instead, use what you know about elasticity along different segments of a linear
demand curve to determine the elasticity of each price-quantity combination.
Price (P)
Total Revenue (TR)
(Dollars) Quantity Demanded (Q) (Dollars)
Marginal Revenue (MR)
(Dollars)
Price Elasticity of Demand
8.00
0
7.20
1
6.40
2
5.60
3
4.80
4
4.00
5
3.20
6
2.40
7
1.60
8
0.80
0.00
9
10
Using the data from the demand schedule, plot the demand and marginal revenue curves on the following graph. Use the blue points (circle symbol)
to plot the demand curve and the purple points (diamond symbol) to plot marginal revenue curve. Plot the points from left to right in the order in
which you want them to appear. Line segments will connect automatically.
Note: Be sure to plot marginal values between the appropriate whole unit values. For example, the first point on your marginal revenue curve
(representing the marginal revenue of the first unit) should be plotted at a value of 0.5 on the horizontal axis, and the dollar value of the marginal
value on the vertical axis: (0.5, $7.20).
6
Demand
Marginal Revenue
Transcribed Image Text:TOTAL REVENUE (Dollars)
PRICE (Dollars)
-4
-6
4
8
6
-8
0
1
2
3
4 5 6 7 8
9
10 11
Quantity (Units)
Demand
Marginal Revenue
Using the data from the demand schedule, plot the total revenue curve on the following graph. Use the green points (triangle symbol) to plot the
points from left to right in the order in which you want them to appear. Line segments will connect automatically.
Hint: Do not forget to plot the point corresponding to a price of $0.
24
22
20
18
16
14
12
10
8
6
4
2
0
0
1
2
3
4 5 6 7
8
9
10
11
QUANTITY (Units)
Total Revenue
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education