3. Revenue curves The blue curve on the following graph represents the demand curve facing a rm 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 18/,- 200 __ Market for Goods 180 . Quantity Demanded j \"50 (Units) 'E 140 Demand Price 2 ( Dollars per unit) 100'00 g 120 E g 100 O 9 so 6 E 60 E1. 40 20 o O 4 8 12 16 20 24 28 32 36 40 QUANTITY (Units) On the previous graph, change the number found in the Quantity Demanded eld to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, or 40 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. 2000 800 Total Revenue 600 1400 1200 TOTAL REVENUE (Dollars) 1000 800 600 400 200 0 4 8 12 16 20 24 28 32 36 40 QUANTITY (Number of units) 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 $ Calculate the total revenue if the firm produces 16 versus 15 units. Then, calculate the marginal revenue of the 16th unit produced. The marginal revenue of the 16th 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 40.) @ 200 + 1'50 Marginal Revenue 120 MARGINAL REVENUE (Dollars) S 8 8 12 16 20 24 28 32 36 40 QUANTITY (Units) total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue is V