Chapter 16 Homework 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 a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Goods Quantity 25 Demanded (Units) Demand Price 125.00 (Dollars per unit) PRICE (Dollars per unit) Demand 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green MacBook Air F10 * # m 28 LO F LL IChapter 16 Homework 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 firm's marginal revenue curve on the following graph. Tools +- Marginal Revenue MARGINAL REVENUE (Dollars) 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) Comparing your total revenue graph to your marginal revenue graph, you can see that total revenue is at the output at which marginal revenue is equal to zero. Grade It Now Save & Continue Continue without saving MacBook Air 7 F10 F11 * # m 29 LO - O ~ O LU C O LL I V V X U > CO ZMindTap - Cengage Learning CENGAGE | MINDTAP Chapter 16 Homework On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 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 3130 2817 A 2504 Total Revenue 2191 1878 TOTAL REVENUE (Dollars) 1565 1252 8 313 O 0 5 10 15 25 30 35 40 0 45 50 QUANTITY (Number of units) Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. MacBook Air *