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Expert Answer

Harjeet Kaur answered this

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14,042 answers

Total revenue = Price (Quantity)

Price Q TR= P(Q)

150 0 0

120 10 1200

90 20 1800

75 25 1875

60 30 1800

30 40 1200

0 50 0

By plotting these points ,we get the total revenue curve (TR) as
shown below :
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Marginal revenue = (Change in TR/ change in Q)

Q TR MR=(change in TR/Change in Q)

10 1200 -

20 1800 60

30 1800 0

40 1200 -60

50 0 -120

The total revenue if the firm produces 10 units = (120)(10)=$

1200 . And if the firm produces 9 units ,then
TR= (123)(9)= $
1107

This implies that the marginal revenue of the 10th units

produced is (1200-1147.5)= $ 93

The total revenue if the firm produces 20 units = (90)(20)= $

1800. And if the firm produces 19 units ,then
TR= (93)(19)=$
1767.

This implies that the marginal revenue of the 20th unit is

(1800-1767)= $33.
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Comparing TR to MR , we can see that total revenue is decreasing

,when MR is negative.

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Q: 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
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A: See answer

Q: 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. Note: Once you enter a value in a white
field, the graph and any corresponding amounts...

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Q: 1. 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 Note: Once you enter a value in a white
field, the graph and any corresponding amounts...

A: See answer 100% (2 ratings)

Q: 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 Note: Once you enter a value in a white
field, the graph and any corresponding amounts...
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