Just needing to know if I have done the work correctly with this problem:
For the total revenue and marginal revenue the answers are:
Price $20 Quantity 0 TR 0 MR 0
Price $18 Quantity 1 TR 18 MR 18
Price $16 Quantity 2 TR 32 MR 14
Price $14 Quantity 3 TR 42 MR 10
Price $12 Quantity 4 TR 48 MR 6
Price $10 Quantity 5 TR 50 MR 2
Price $8 Quantity 6 TR 48 MR -2
Price $6 Quantity 7 TR 42 MR -6
Price $4 Quantity 8 TR 32 MR -10
Price $2 Quantity 9 TR 18 MR -14
I am also needing to graph the demand, MR and the MC curves on a graph. I know that the MR=Marginal Revenue and MC=Marginal cost. The only thing that I need to know is what numbers do I use to graph the demand.
Any assistance would be much appreciated.
see my response to your earlier post.
To determine the numbers to graph the demand curve, you can use the price and quantity values given in the problem. The demand curve represents the relationship between price and quantity demanded.
In your case, you have the following price and quantity values:
Price: $20, $18, $16, $14, $12, $10, $8, $6, $4, $2
Quantity: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9
To graph the demand curve, you need to plot the price on the vertical axis (y-axis) and the quantity on the horizontal axis (x-axis). Each point on the graph represents a price-quantity combination.
For example, the first point would be (0, $20), meaning that at a price of $20, there is a quantity demanded of 0.
Plot the remaining points accordingly and then connect them to form a line. This line represents the demand curve.
To graph the marginal revenue (MR) curve and the marginal cost (MC) curve, you need additional information. Marginal revenue is the change in total revenue from selling one additional unit, while marginal cost is the change in total cost from producing one additional unit.
If you have the total cost values for each quantity, you can calculate the marginal cost by subtracting the total cost of the previous quantity from the total cost of the current quantity.
Once you have the marginal cost values, you can plot them on the graph. The marginal revenue curve will have the same quantity values as the demand curve, but the prices will be different based on the marginal revenue values you have provided.
Plot the MR values against the corresponding quantities on the graph.
Remember, the MC curve should intersect the MR curve at the quantity that maximizes profit.
I hope this helps you plot the demand, MR, and MC curves. Let me know if you have any further questions!