Documente Academic
Documente Profesional
Documente Cultură
Product
Price Demand
$500 0
475 1
450 2
425 3
400 4
375 5
350 6
325 7
300 8
275 9
250 10
225 11
200 12
175 13
150 14
125 15
P2.2 SOLUTION
A. Total and marginal revenue at each level of product demand are as follows:
Product Total Marginal
Price Demand Revenue Revenue
P Q TR=PQ MR=TR/
Q
$500 0 --- ---
475 1 $475 $475
450 2 900 425
425 3 1,275 375
400 4 1,600 325
375 5 1,875 275
350 6 2,100 225
325 7 2,275 175
300 8 2,400 125
275 9 2,475 75
250 10 2,500 25
225 11 2,475 (25)
200 12 2,400 (75)
175 13 2,275 (125)
150 14 2,100 (175)
125 15 1,875 (225)
2.