To show that the marginal revenue curve always lies below the demand curve, consider the following points on a demand curve. (1) Graph the demand curve (2) Calculate TR (total revenue) and MR (marginal revenue) for each quantity (as indicated in the table below) (3) On the same graph as your demand curve, graph the marginal revenue curve using your calculations of MR (Hint: just as the demand curve shows the price at for each quantity level), the MR curve shows the MR for each quantity level. P $15 $12 $9 $6 $3 Q 1 23 2 4 5 TR MR

To show that the marginal revenue curve always lies below the demand curve, consider the following points on a demand curve. (1) Graph the demand curve (2) Calculate TR (total revenue) and MR (marginal revenue) for each quantity (as indicated in the table below) (3) On the same graph as your demand curve, graph the marginal revenue curve using your calculations of MR (Hint: just as the demand curve shows the price at for each quantity level), the MR curve shows the MR for each quantity level. P $15 $12 $9 $6 $3 Q 1 23 2 4 5 TR MR

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.2: Internalizing Externalities

Problem 2ST

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