8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the...
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8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the columns for TR and MR in the table below. (Note that the figures for MR are entered between 0 and 1, 1 and 2, 2 and 3, etc.): The demand curve for the product of firm T Price (AR) () Quantity (Units) 20 0 18 1 16 14 12 61 2 2 3 4 10 5 8 6 6 7 Total revenue (TR) () Marginal revenue (MR) () (b) What is the price elasticity of demand at P = 10?. (c) Over what price range is demand price elastic? . (d) Over what price range is demand price inelastic? . 8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the columns for TR and MR in the table below. (Note that the figures for MR are entered between 0 and 1, 1 and 2, 2 and 3, etc.): The demand curve for the product of firm T Price (AR) () Quantity (Units) 20 0 18 1 16 14 12 61 2 2 3 4 10 5 8 6 6 7 Total revenue (TR) () Marginal revenue (MR) () (b) What is the price elasticity of demand at P = 10?. (c) Over what price range is demand price elastic? . (d) Over what price range is demand price inelastic? .
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a To fill in the columns for TR and MR we can use the formula Total Revenue TR Price AR Quantity Uni... View the full answer
Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
Posted Date:
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