(Answered) 2. Calculating marginal revenue from a linear demand curveThe blue curve on the following graph…

2. Calculating marginal revenue from a linear demand curve
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.
051015202530354045502502252001751501251007550250 PRICE (Dollars per unit) QUANTITY (Units) Demand Graph Input Tool Market for Goods Quantity Demanded(Units) Demand Price(Dollars per unit)
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, 10, 20, 25, 30, 40, and 50 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.
Total Revenue
0510152025303540455031302817250421911878156512529396263130 TOTAL REVENUE (Dollars) QUANTITY (Number of units)
Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced.
The marginal revenue of the 10th unit produced is.
Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced.
The marginal revenue of the 20th 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.
Marginal Revenue
051015202530354045502502252001751501251007550250 -25 -50 MARGINAL REVENUE (Dollars) QUANTITY (Units)
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.