Sadie Rasmussen ECO 2314 section 264 April 2, 2024 Student Name (individual work/one student per handout): 1. (Marginal Revenue; Choosing the Optimal Quantity and Price) Jimmy is the only child who lives on his street. He opens a lemonade stand in the summer and no other residents are interested in competing with Jimmy. Jimmy's demand schedule is shown in the table below. A. Calculate the total revenue and marginal revenue for each change in quantity. B. Graph the demand curve and the marginal revenue curve. C. If Jimmy's mom pays for all of his costs of production and he has nothing else to do with his time in the summer, we assume a marginal cost of zero. If this is the case, what price should Jimmy charge to maximize profits? Price Quantity Total Revenue Marginal Revenue $10 9 8 7 4 5 - 1