2. Calculating marginal revenue from a linear demand curve 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. _\\ Graph Input Tool / 100 __ Market for Goods 90 - Quantity Demanded 80 (Units) E 70 Demand Price 3 (Dollars per unit) 5000 g 60 E c=u 50 .+ O 9 4o 5 30 E Demand 20 10 O | l l l I | l l l i O 1 2 3 4 5 6 7 8 9 10 QUANTITY (Units) 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, 2, 4, 5, 6, 8, and 10 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. 250 225 Total Revenue 200 175 150 TOTAL REVENUE (Dollars) 125 100 75 50 25 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Number of units)Calculate the total revenue if the rm produces 2 versus 1 units. Then, calculate the marginal revenue of the second unit produced. The marginal revenue of the second unit produced is I: . Calculate the total revenue if the firm produces 4 versus 3 units. Then, calculate the marginal revenue of the fourth unit produced. The marginal revenue of the fourth unit produced is . 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 rm '5 marginal revenue curve on the following graph. (Round all values to the nearest increment of 20. ) r'\\ (-7,! 100 -- 30 " Marginal Revenue E E a 60 9 Lu 3 z E 40 L|.| [I J