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Refer to the demand schedule below. a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity Demanded (Q) Price (P) Total Revenue Marginal Revenue $7.00 0.00 6.50 2. 6.50 S 12.00 S 6.50 6.00 2. 5.50 5.50 3. 16.50 $ 20.00 %24 4.50 5.00 %2S 3.50 250 4,50 5. 22.50 4.00 %24 24.00 %24 1.50 3.50 7. 24 24.50 24.00 %24 0.50 3.00 8 %24 -0.50 2.50 9 22.50 $ -1.50 26 Tools 24 TR 22 20 18 TR 16 14 MR 4. 0. MR 0 1 2 3 4 56 7 8 9 10 Quantity nstructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter the highest price first E Use Chapter 6's total-revenue test for price elasticity to designate the elastic and inelastic segments of your graphed demand curve. Demand is elastic from a price of $ emand is inelastic from a price of $ to a price of to a price of $ In general, when marginal revenue is positive, demand is elastic "hen marginal revenue is negative, demand is inelastic Suppose the marginal cost of successive units of output is zero. What output would the profit-seeking firm produce? (Assume the m can only produce whole units.) TR, price ($) E

Refer to the demand schedule below. a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity Demanded (Q) Price (P) Total Revenue Marginal Revenue $7.00 0.00 6.50 2. 6.50 S 12.00 S 6.50 6.00 2. 5.50 5.50 3. 16.50 $ 20.00 %24 4.50 5.00 %2S 3.50 250 4,50 5. 22.50 4.00 %24 24.00 %24 1.50 3.50 7. 24 24.50 24.00 %24 0.50 3.00 8 %24 -0.50 2.50 9 22.50 $ -1.50 26 Tools 24 TR 22 20 18 TR 16 14 MR 4. 0. MR 0 1 2 3 4 56 7 8 9 10 Quantity nstructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter the highest price first E Use Chapter 6's total-revenue test for price elasticity to designate the elastic and inelastic segments of your graphed demand curve. Demand is elastic from a price of $ emand is inelastic from a price of $ to a price of to a price of $ In general, when marginal revenue is positive, demand is elastic "hen marginal revenue is negative, demand is inelastic Suppose the marginal cost of successive units of output is zero. What output would the profit-seeking firm produce? (Assume the m can only produce whole units.) TR, price ($) E

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Title: Understanding Demand, Total Revenue, and Marginal Revenue** **Instructions for Students:** 1. **Demand Schedule Calculations:** - Use the demand schedule provided to calculate total revenue (TR) and marginal revenue (MR) at each quantity level. - Ensure your answers are rounded to two decimal places. Use a negative sign if necessary for negative numbers. **Demand Schedule:** | Price (P) | Quantity Demanded (Q) | Total Revenue (TR) | Marginal Revenue (MR) | |-----------|-----------------------|--------------------|-----------------------| | $7.00 | 1 | $6.50 | $6.50 | | $6.00 | 2 | $12.00 | $5.50 | | $5.00 | 3 | $16.50 | $4.50 | | $4.50 | 4 | $20.00 | $3.50 | | $4.00 | 5 | $22.50 | $2.50 | | $3.50 | 6 | $24.00 | $1.50 | | $3.00 | 7 | $24.50 | $0.50 | | $2.50 | 8 | $24.00 | \-0.50 | | $2.00 | 9 | $22.50 | \-1.50 | **Graph Explanation:** - The graph illustrates the relationship between total revenue (TR), price, and quantity. - The TR curve peaks and then declines, indicating the maximum revenue point before marginal revenue becomes negative. - The 'D' curve represents demand, while the 'MR' curve depicts marginal revenue. - Each point on the graph correlates with quantities from 1 to 9 and prices ranging from $7.00 to $2.00. **Further Instructions:** 2. **Price Elasticity Analysis:** - Use Chapter 6's total-revenue test to identify the elastic and inelastic segments of the demand curve. - Determine elasticity across specific price ranges. 3. **Elasticity Rules:** - When MR is positive, demand is elastic. - When MR is negative, demand is inelastic. 4. **
Transcribed Image Text:**Title: Understanding Demand, Total Revenue, and Marginal Revenue** **Instructions for Students:** 1. **Demand Schedule Calculations:** - Use the demand schedule provided to calculate total revenue (TR) and marginal revenue (MR) at each quantity level. - Ensure your answers are rounded to two decimal places. Use a negative sign if necessary for negative numbers. **Demand Schedule:** | Price (P) | Quantity Demanded (Q) | Total Revenue (TR) | Marginal Revenue (MR) | |-----------|-----------------------|--------------------|-----------------------| | $7.00 | 1 | $6.50 | $6.50 | | $6.00 | 2 | $12.00 | $5.50 | | $5.00 | 3 | $16.50 | $4.50 | | $4.50 | 4 | $20.00 | $3.50 | | $4.00 | 5 | $22.50 | $2.50 | | $3.50 | 6 | $24.00 | $1.50 | | $3.00 | 7 | $24.50 | $0.50 | | $2.50 | 8 | $24.00 | \-0.50 | | $2.00 | 9 | $22.50 | \-1.50 | **Graph Explanation:** - The graph illustrates the relationship between total revenue (TR), price, and quantity. - The TR curve peaks and then declines, indicating the maximum revenue point before marginal revenue becomes negative. - The 'D' curve represents demand, while the 'MR' curve depicts marginal revenue. - Each point on the graph correlates with quantities from 1 to 9 and prices ranging from $7.00 to $2.00. **Further Instructions:** 2. **Price Elasticity Analysis:** - Use Chapter 6's total-revenue test to identify the elastic and inelastic segments of the demand curve. - Determine elasticity across specific price ranges. 3. **Elasticity Rules:** - When MR is positive, demand is elastic. - When MR is negative, demand is inelastic. 4. **
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