KEY QUESTION Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales:

a. What can you conclude about the structure of the industry in which this firm is operating? Explain.

b. Graph the demand, total-revenue, and marginal-revenue curves for this firm.

c. Why do the demand and marginal-revenue curves coincide?

d. “Marginal revenue is the change in total revenue associated with additional units of output.” Explain verbally and graphically, using the data in the table.

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Product Price Quantity Demanded Total Revenue Marginal Revenue $2 0 2 22 2 2 2 3 22 2 2 5 45 4