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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
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 ? Market for Goods 150 135 Quantity 25 Demanded 120 (Units) 105 Demand Price 75.00 (Dollars per unit) 90 75 PRICE (Dollars per unit) 45 Demand 30 15 0 10 15 20 25 30 35 40 45 50 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, 10, 20, 25, 30, 40, and 50 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. 1880 A 1602 Total Revenue 1504 1316 1128 940 TOTAL REVENUE (Dollars) 752 584 376 188 5 10 15 20 25 30 35 40 45 50 QUANTITY (Number of units)Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th 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 firm's marginal revenue curve on the following graph. 150 + 135 120 Marginal Revenue 105 75 MARGINAL REVENUE (Dollars) 60 -15 30 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units)-30 10 15 20 25 30 35 40 45 50 positive QUANTITY (Units) negative equal to zero total revenue graph to your marginal revenue graph, you can see that when total revenue is increasing, marginal revenue is
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