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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
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 Demanded 6 Uinits) Demand Price 50.00 (Dollars per unit) U8 828283 PRICE (Dollars per unit) Demand 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, 2, 4, 5, 6, 8, and 10 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. (?) 250 228 200 Total Revenue TOTAL REVENUE (Dollars) QUANTITY (Number of units)Calculate the total revenue if the firm produces 2 versus i units. Then, calculate the marginal revenue of the second unit produced. The marginal revenue of the second unit produced is. Calculate the total revenue if the firm produces 4 versus 3 units. Then, calculate the marginal revenue of the fourth unit produced. The marginal revenue of the fourth 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. 100 Marginal Revenue O B8: 82 28 8 MARGINAL REVENUE (Dollars) 10 minimized QUANTITY (Units) maximized equal to zero 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
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