Use the black points (plus symbol) to graph the marginal revenue from the 100,000th, 200,000th, 300,000th, 400,000th, 500,000th, and 600,000th copy of the novel. Remember to plot from left to right and to plot between integers. For example, if the marginal revenue of increasing production from 100,000 copies to 200,000 copies were 10, then you would plot a point at (150, 10). Next use the orange line (square symbol) to graph the marginal-cost curve faced by the publisher. Finally, use the blue points (circle symbol) to graph demand at the following quantities (in thousands): 0, 100, 200, 300, 400, 500, 600, 700, 800, 900, and 1,000. 100 90 Price 80 70 60 50 50 40 30 20 10 0 -10 10 0 100 200 300 400 500 600 700 800 900 1000 Quantity (Thousands of copies) + Marginal Revenue Marginal Cost Demand ? Deadweight Loss The marginal-revenue and marginal-cost curves intersect at a quantity of copies. On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss. The marginal-revenue and marginal-cost curves intersect at a quantity of copies.
Use the black points (plus symbol) to graph the marginal revenue from the 100,000th, 200,000th, 300,000th, 400,000th, 500,000th, and 600,000th copy of the novel. Remember to plot from left to right and to plot between integers. For example, if the marginal revenue of increasing production from 100,000 copies to 200,000 copies were 10, then you would plot a point at (150, 10). Next use the orange line (square symbol) to graph the marginal-cost curve faced by the publisher. Finally, use the blue points (circle symbol) to graph demand at the following quantities (in thousands): 0, 100, 200, 300, 400, 500, 600, 700, 800, 900, and 1,000. 100 90 Price 80 70 60 50 50 40 30 20 10 0 -10 10 0 100 200 300 400 500 600 700 800 900 1000 Quantity (Thousands of copies) + Marginal Revenue Marginal Cost Demand ? Deadweight Loss The marginal-revenue and marginal-cost curves intersect at a quantity of copies. On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss. The marginal-revenue and marginal-cost curves intersect at a quantity of copies.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Use the black points (plus symbol) to graph the marginal revenue from the 100,000th, 200,000th, 300,000th, 400,000th, 500,000th, and 600,000th
copy of the novel. Remember to plot from left to right and to plot between integers. For example, if the marginal revenue of increasing production
from 100,000 copies to 200,000 copies were 10, then you would plot a point at (150, 10). Next use the orange line (square symbol) to graph the
marginal-cost curve faced by the publisher. Finally, use the blue points (circle symbol) to graph demand at the following quantities (in thousands): 0,
100, 200, 300, 400, 500, 600, 700, 800, 900, and 1,000.
100
90
Price
80
70
60
50
50
40
30
20
10
0
-10
10
0
100 200 300 400 500 600 700 800 900 1000
Quantity (Thousands of copies)
+
Marginal Revenue
Marginal Cost
Demand
?
Deadweight Loss
The marginal-revenue and marginal-cost curves intersect at a quantity of
copies.
On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss.
The marginal-revenue and marginal-cost curves intersect at a quantity of
copies.
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