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, 10, 20, 25, 30, 40, and 50 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. TOTAL REVENUE (Dollars) 3130 2817 2504 MARGINAL REVENUE (Dollars) 2191 1878 1565 1252 939 626 313 0 250 225 200 175 150 Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ 125 Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th unit produced is $ 100 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. 75 50 25 0 0 -25 + 5 -50 + 0 10 5 + 15 20 25 30 35 QUANTITY (Number of units) 10 + 40 15 20 25 30 35 + H 45 50 QUANTITY (Units) 40 Total Revenue ? 45 50 Marginal Revenue (?)
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, 10, 20, 25, 30, 40, and 50 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. TOTAL REVENUE (Dollars) 3130 2817 2504 MARGINAL REVENUE (Dollars) 2191 1878 1565 1252 939 626 313 0 250 225 200 175 150 Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ 125 Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th unit produced is $ 100 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. 75 50 25 0 0 -25 + 5 -50 + 0 10 5 + 15 20 25 30 35 QUANTITY (Number of units) 10 + 40 15 20 25 30 35 + H 45 50 QUANTITY (Units) 40 Total Revenue ? 45 50 Marginal Revenue (?)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

Transcribed Image Text:Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
PRICE (Dollars per unit)
250
225
200
175
150
125
100
75
50
25
0
0 5
10
Demand
15 20 25 30 35 40 45 50
QUANTITY (Units)
Graph Input Tool
Market for Goods
Quantity
Demanded
(Units)
Demand Price
(Dollars per unit)
25
125.00
?

Transcribed Image Text: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, 10,
20, 25, 30, 40, and 50 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.
TOTAL REVENUE (Dollars)
3130
2817
2504
MARGINAL REVENUE (Dollars)
2191
1878
1565
1252
939
626
313
0
250
225
200
Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced.
The marginal revenue of the 10th unit produced is $
175
Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced.
The marginal revenue of the 20th unit produced is $
150
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.
125
100
75
50
0
0
5
-25
10
-50
15
20 25 30 35
QUANTITY (Number of units)
40
45 50
5 10 15
20 25 30 35
QUANTITY (Units)
Total Revenue
40 45
50
Marginal Revenue
(?)
Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is increasing, marginal revenue is
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