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The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. 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) 200 TOTAL REVENUE (Dollars) 180 160 140 120 100 80 60 40 20 0 2000 1800+ 1400 1600- 1200 4 0 600 1000+ O 600 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, or 40 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. 400 4 Demand 8 12 16 20 24 28 32 36 40 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) A Total Revenue 20 (?) 100.00

The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. 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) 200 TOTAL REVENUE (Dollars) 180 160 140 120 100 80 60 40 20 0 2000 1800+ 1400 1600- 1200 4 0 600 1000+ O 600 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, or 40 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. 400 4 Demand 8 12 16 20 24 28 32 36 40 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) A Total Revenue 20 (?) 100.00

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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The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. 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) 200 TOTAL REVENUE (Dollars) 180 160 140 120 + 100 80 60 40 20 4 0 2000 T 1800 1600 21400 Ⓒ 1200 1000 600 600 + 04 8 12 16 20 24 28 28 QUANTITY (Units) On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, or 40 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. 400 200+ Demand 0 + 0 4 32 32 36 40 8 12 16 20 24 28 32 QUANTITY OF OUTPUT (Number of units) Graph Input Tool 36 40 Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) Total Revenue 20 100.00 (?) ?
Transcribed Image Text:The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. 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) 200 TOTAL REVENUE (Dollars) 180 160 140 120 + 100 80 60 40 20 4 0 2000 T 1800 1600 21400 Ⓒ 1200 1000 600 600 + 04 8 12 16 20 24 28 28 QUANTITY (Units) On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, or 40 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. 400 200+ Demand 0 + 0 4 32 32 36 40 8 12 16 20 24 28 32 QUANTITY OF OUTPUT (Number of units) Graph Input Tool 36 40 Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) Total Revenue 20 100.00 (?) ?
200+ 0 MARGINAL REVENUE (Dollars) 200 Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced. The marginal revenue of the eighth unit produced is $ 160 Calculate the total revenue if the firm produces 16 versus 15 units. Then, calculate the marginal revenue of the 16th unit produced. The marginal revenue of the 16th unit produced is $ 120 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. (Round all values to the nearest increment of 40.) 80 0 40 0 4 -40 8 16 20 24 28 32 36 QUANTITY OF OUTPUT (Number of units) 0 12 4 40 8 12 16 16 20 24 28 3.2 QUANTITY OF OUTPUT (Units) 36 40 Marginal Revenue Comparing your total revenue graph to your marginal revenue graph, you can see that total revenue is at the output at which marginal revenue is equal to zero.
Transcribed Image Text:200+ 0 MARGINAL REVENUE (Dollars) 200 Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced. The marginal revenue of the eighth unit produced is $ 160 Calculate the total revenue if the firm produces 16 versus 15 units. Then, calculate the marginal revenue of the 16th unit produced. The marginal revenue of the 16th unit produced is $ 120 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. (Round all values to the nearest increment of 40.) 80 0 40 0 4 -40 8 16 20 24 28 32 36 QUANTITY OF OUTPUT (Number of units) 0 12 4 40 8 12 16 16 20 24 28 3.2 QUANTITY OF OUTPUT (Units) 36 40 Marginal Revenue Comparing your total revenue graph to your marginal revenue graph, you can see that total revenue is at the output at which marginal revenue is equal to zero.
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