Refer to the demand schedule below. a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity Demanded (Q) Price (P) Total Revenue Marginal Revenue $7.00 0.00 6.50 2. 6.50 S 12.00 S 6.50 6.00 2. 5.50 5.50 3. 16.50 $ 20.00 %24 4.50 5.00 %2S 3.50 250 4,50 5. 22.50 4.00 %24 24.00 %24 1.50 3.50 7. 24 24.50 24.00 %24 0.50 3.00 8 %24 -0.50 2.50 9 22.50 $ -1.50 26 Tools 24 TR 22 20 18 TR 16 14 MR 4. 0. MR 0 1 2 3 4 56 7 8 9 10 Quantity nstructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter the highest price first E Use Chapter 6's total-revenue test for price elasticity to designate the elastic and inelastic segments of your graphed demand curve. Demand is elastic from a price of $ emand is inelastic from a price of $ to a price of to a price of $ In general, when marginal revenue is positive, demand is elastic "hen marginal revenue is negative, demand is inelastic Suppose the marginal cost of successive units of output is zero. What output would the profit-seeking firm produce? (Assume the m can only produce whole units.) TR, price ($) E
Refer to the demand schedule below. a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity Demanded (Q) Price (P) Total Revenue Marginal Revenue $7.00 0.00 6.50 2. 6.50 S 12.00 S 6.50 6.00 2. 5.50 5.50 3. 16.50 $ 20.00 %24 4.50 5.00 %2S 3.50 250 4,50 5. 22.50 4.00 %24 24.00 %24 1.50 3.50 7. 24 24.50 24.00 %24 0.50 3.00 8 %24 -0.50 2.50 9 22.50 $ -1.50 26 Tools 24 TR 22 20 18 TR 16 14 MR 4. 0. MR 0 1 2 3 4 56 7 8 9 10 Quantity nstructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter the highest price first E Use Chapter 6's total-revenue test for price elasticity to designate the elastic and inelastic segments of your graphed demand curve. Demand is elastic from a price of $ emand is inelastic from a price of $ to a price of to a price of $ In general, when marginal revenue is positive, demand is elastic "hen marginal revenue is negative, demand is inelastic Suppose the marginal cost of successive units of output is zero. What output would the profit-seeking firm produce? (Assume the m can only produce whole units.) TR, price ($) E
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 9.3IP
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Transcribed Image Text:Refer to the demand schedule below.
a. Use the following demand schedule to calculate total revenue and marginal revenue at each quantity.
Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a
negative sign (-) in front of those numbers.
Quantity
Demanded (Q)
Price (P)
Total Revenue
Marginal Revenue
$7.00
0.00
6.50
24
6.50
%24
6.50
6.00
12.00 $
5.50
5.50
%24
16.50
24
4.50
5.00
4.
24
20.00
%24
3.50
4.50
24
22.50 $
2.50
4.00
%24
24.00 $
1.50
3.50
%24
24.50
24
0.50
3.00
8.
24.00
24
-0.50
2.50
22.50
24
-1.50
26
Tools
24
TR
22
20
TR
D.
18
16
14
12
MR
10
8.
4
D.
MR
-2
0 1 2 3 4 5 6 7 8 9 10
Quantity
Instructions: Enter your answers rounded to two decimal places. For each segment, be sure to enter the highest price first.
c. Use Chapter 6's total-revenue test for price elasticity to designate the elastic and inelastic segments of your graphed demand curve.
Demand is elastic from a price of $
Demand is inelastic from a price of $
to a price of $
to a price of $
d. In general, when marginal revenue is positive, demand is elastic
When marginal revenue is negative, demand is inelastic
e. Suppose the marginal cost of successive units of output is zero. What output would the profit-seeking firm produce? (Assume the
firm can only produce whole units.)
%24
S'S
S SSA
%24
%24
5,
TR, price ($)
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