The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns in the table above. The five choices are also labeled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D. TOTAL REVENUE (Thousands of dollars per year) 50 19 8 8 15 10 in 0 17 0 A 50 B DO 150 AD 100 200 250 300 QUANTITY (Dishwashers per year) 350 E 400 ?
The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns in the table above. The five choices are also labeled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D. TOTAL REVENUE (Thousands of dollars per year) 50 19 8 8 15 10 in 0 17 0 A 50 B DO 150 AD 100 200 250 300 QUANTITY (Dishwashers per year) 350 E 400 ?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 1.4CE
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Question
Using the information on the slope of the lines tangent to the curve at points B and D, plot the slope of the total revenue curve on the graph below. (As it turns out, it’s a straight line, so the two points you plot will determine a line.)
The total revenue curve reaches its maximum at a quantity of ____ dishwashers per year. At this point, the slope of the total revenue curve is _____.
Transcribed Image Text:The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns in
the table above. The five choices are also labeled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D.
50
8
TOTAL REVENUE (Thousands of dollars per year)
19
10
20
15
10
חו
0
4+
0
A
50
BA
150
DO
AD
100
200 250 300
QUANTITY (Dishwashers per year)
350
E
400
?
Transcribed Image Text:Using the information on the slope of the lines tangent to the curve at points B and D, plot the slope of the total revenue curve on the graph below.
(As it turns out, it's a straight line, so the two points you plot will determine a line.)
REVENUE (Dollars per dishwasher)
250
200
150
100
50
04
-50
-100
-150
-200
-250
Ho
50
100
200
250
300
QUANTITY (Dishwashers per year)
150
350
400
The total revenue curve reaches its maximum at a quantity of
Slope of TR
(c
dishwashers per year. At this point, the slope of the total revenue curve is
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