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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)

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\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)

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