The blue curve on the fallowing graph represents the demand curve facing a firm that can set its own prices.Use the graph inout tool to help you answer the folowing questions. You will not be graded on any changes you make to this graph.Note: Once you enter a value in a white fidld, the graph and any corresponding amounts in cach grey field will change accordingly.Graph Input ToolMarket for Goods200nguantitySemanded20100Demand Price(Dolars per unt)140100.00120100Demand402012 16 20 24 21 2 M 40QUANTITY Iunita)On the graph inpue tool, change the number found in the Quantity Demanded feld to determine the prices that correspond to the production of 0, 8,26, 20, 24, 32, and 40 units of output Calculate the total revenue for each of these production leveis. Then, on the fallowing graph, use the greenpaints (triangie symbal) to plot the resuuts.2000Tata Revenue2000040020016 20QUANTITY (Number of uni)12242040Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced.The marginal revenue of the eighth unit produced isCalculate the total revenue if the firm produces 16 versus 15 units. Then, calculate the marginal revenue of the 16th unit produced.The marginal revenue of the 16th unit produced is 5Gun ad suog 20 Based on your answers from the previous question, and assuming that the marginal reverue curve is a straignt ine, use the black Nine (plus symbol)to piot the firm's marginal revenue curve on the fallowing graph. (Round al values to the nearest increment of 40.)200160Marginal Forverue120! 12 16 20 * 2* 2 x 0QUANTITY (Unts)Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue isMARGINAL REVENUE (Dolars)

Price (1) Quantity (2) Total Revenue (1*2) = (3) 200 0 0 160 8 1280 120 16 1920 100 20 2000…

e graph input toal, change the number found in the Quantity Demanded fieid to determine the prices that correspond to the production af a 2. 24, 32, and 40 units of output Calcuiate the total revenue for cach of these production leveis. Then, on the fallowing grapih, use the gred (triangie symbal) to piot the results. Tuta Revenue 000 400

e graph input toal, change the number found in the Quantity Demanded fieid to determine the prices that correspond to the production af a 2. 24, 32, and 40 units of output Calcuiate the total revenue for cach of these production leveis. Then, on the fallowing grapih, use the gred (triangie symbal) to piot the results. Tuta Revenue 000 400

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 13P

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