(Solved): 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph re ...

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 the white field, the graph and any corresponding amounts in each grey field will change accordingly. F PRICE (Dollars per unit) 829 88 889 2. 200 180 160 140 120 100 + 0 5 10 Demand 15 20 25 30 35 40 45 50 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) 25 100.00 Homework: Output, Price, and Profit: The Importance of Marginal Analysis On the preceding graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of Q, 10, 20, 25, 30, 40, or 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 (Dollars) 2500 2250 2000 1750 1500 1250 1000 750 500 250 0 5 10 15 20 25 30 35 QUANTITY (Number of units) 40 45 50 Total Revenue 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 S 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. (Round all values to the nearest multiple of 40.) Note: Marginal revenue is ordinarily plotted between integers; in this problem, you will plot MR right at integer values. When the distance from one unit to the next is very small-as in this graph-there is no noticeable difference in the two plotting methods. MARGINAL REVENUE (Dollars) 200 130 40 B 10 15 20 25 30 35 QUANTITY (Units) Marginal Revenue Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is decreasing, marginal revenue is