Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

(the following images are what the graph adjusts to in correspondence with the following numbers)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
\f0 4 B 12 16 20 24 28 32 36 40 QUANTITY (Units) equal to zero negative Comparing your total revenue graph to you. positive venue graph, you can see that when total revenue is increasing, marginal revenue is equal to zeroGraph Input Tool ? 200 Market for Goods 180 Quantity 0 160 Demanded 140 (Units) 120 Demand 200.00 100 Price ( Dollars per 80 PRICE (Dollars per unit) unit) 60 Demand 40 20 0 4 B 12 16 20 24 28 32 36 40 QUANTITY (Units)Graph Input Tool 200 Market for Goods 180 Quantity 8 160 Demanded 140 (Units) 120 Demand 160.00 100 Price (Dollars per 80 PRICE (Dollars per unit) unit) 60 Demand 40 20 0 4 B 12 16 20 24 28 32 36 40 QUANTITY (Units)Graph Input Tool 200 Market for Goods 180 Quantity 16 160 Demanded 140 (Units) 120 Demand 120.00 100 Price (Dollars per 80 PRICE (Dollars per unit) unit) 60 Demand 40 20 0 0 4 8 12 16 20 24 28 32 36 40 QUANTITY (Units)Graph Input Tool 200 Market for Goods 180 Quantity 20 160 Demanded 140 (Units) 120 Demand 100.00 100 Price (Dollars per 80 PRICE (Dollars per unit) unit) 60 Demand 40 20 0 0 4 8 12 16 20 24 28 32 36 40 QUANTITY (Units)Graph Input Tool 200 Market for Goods 180 Quantity 24 160 Demanded 140 (Units) 120 Demand 80.00 100 Price (Dollars per 80 unit) PRICE (Dollars per unit) 60 Demand 40 20 0 0 4 8 12 16 20 24 28 32 36 40 QUANTITY (Units)\fPRICE (Dollars per unit) Demand 12 16 20 24 28 QUANTITY (Units) 32 36 40 Graph Input Tool Market for Goods [1 Quantity Demanded Be (Units) Demand Price 40.00 (Dollars per unit) PRICE (Dollars per unit) 8 12 16 20 24 28 QUANTITY (Units) + 32 36 40 Graph Input Tool Market for Goods [1 Quantity Demanded A (Units) Demand Price 0.00 (Dollars per unit)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Course In Environmental Economics

Authors: Daniel J Phaneuf, Till Requate

1st Edition

1316866815, 9781316866818

More Books

Students also viewed these Economics questions

Question

8. What values do you want others to associate you with?

Answered: 1 week ago