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 the white field, the graph and any corresponding amounts in each grey field will change accordingly. / \\ Graph Input Tool Q}; 200 __ Market for Goods 130 - Quantl Deman ed 160 (Units) 7% 140 Demand Price 2 (Dollars per unit) 100'00 g 120 E 100 - - - - - I+ E 9 50 \"d 60 n: In. Demand 40 20 0 | | l l I | | | l i U 2 4 6 E 10 12 14 16 18 20 QUANTITY (Units) On the preceding graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 4, 8, 10, 12, 16, or 20 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. 1000 A A A A 900 500 Total Revenue 700 500 500 400 300 TOTAL REVENUE (Dollars) 200 100 QUANTITY (Number of units) 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 C]. 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 S. 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 multiple of 40.) Note: Marginal revenue is ordinarily plotted between integers; in this problem, you will plot MR right at integer values. When the distance from one unit to the next is very smallas in this graphthere is no noticeable difference in the two plotting methods. (W (-9 200 150 Marginal Revenue E e E 120 , Q, m 3 2 g 30 , LLI m _I