To show that the marginal revenue curve always lies below the demand curve, consider the following points on a demand curve. (1) Graph the demand curve (2) Calculate TR (total revenue) and MR (marginal revenue) for each quantity (as indicated in the table below) (3) On the same graph as your demand curve, graph the marginal revenue curve using your calculations of MR (Hint: just as the demand curve shows the price at for each quantity level), the MR curve shows the MR for each quantity level. P $15 $12 $9 $6 $3 Q 1 23 2 4 5 TR MR

To show that the marginal revenue curve always lies below the demand curve, consider the following points on a demand curve. (1) Graph the demand curve (2) Calculate TR (total revenue) and MR (marginal revenue) for each quantity (as indicated in the table below) (3) On the same graph as your demand curve, graph the marginal revenue curve using your calculations of MR (Hint: just as the demand curve shows the price at for each quantity level), the MR curve shows the MR for each quantity level. P $15 $12 $9 $6 $3 Q 1 23 2 4 5 TR MR

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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