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. TOTAL REVENUE (Dollars) 2500 2250 2000 1750 1500 1250 1000 750 500 250 0 05 10 15 20 25 30 35 40 45 50 QUANTITY (Number of units) Total Revenue ? 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. The marginal revenue of the 20th 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 firm's marginal revenue curve on the following graph. MARGINAL REVENUE (Dollars) 200 180 160 140 120 100 80 60 40 20 Marginal Revenue ?. Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th 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 firm's marginal revenue curve on the following graph. MARGINAL REVENUE (Dollars) 200 180 160 140 120 100 80 60 40 20 0 -20 -40 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) Marginal Revenue (?) MARGINAL REVENUE (Dollars) 200 180 160 Marginal Revenue 140 120 100 80 60 40 20 0 -20 -40 0 5 10 15 20 25 30 QUANTITY (Units) 35 40 45 50 Comparing your total revenue graph to your marginal revenue graph, you can see that total revenue is marginal revenue is equal to zero. maximized equal to zero minimized at the output at which 1. Sources of monopoly power Monopolists, unlike competitive firms, have some market power. A monopolist can increase price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry. Barriers to Entry Economies of Scale Government- Created Monopolies Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario. Scenario The Aluminum Company of America (Alcoa) formerly controlled all U.S. sources of bauxite, a key component in the production of aluminum. Given that Alcoa did not sell bauxite to any other companies, Alcoa was a monopolist in the U.S. aluminum industry from the late 19th century until the 1940s. In the public water industry, low average total costs are obtained only through large- scale production. In other words, the initial cost of setting up all the necessary pipes makes it risky and, most likely, unprofitable for competitors to enter the market. Patents are granted to inventors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy. Without the existence of patents, it is argued, research and development for improved pharmaceutical products is unlikely to take place, since there's nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs. Exclusive Ownership of a Key Resource 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. PRICE (Dollars per unit) 200 180 160 120 100 80 40 20 8 8 R Demand 05 10 15 20 25 30 35 40 45 50 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded 25 (Units) Demand Price 100.00 (Dollars per unit) ?