Answer the following questions.
a. Graph the inverse demand curve P = 12 - Q. On your graph, identify the area of total revenue associated with 2 and then 3 units of output. Is marginal revenue of the third unit positive or negative?
b. Graph the inverse demand curve P = 12 - Q. On your graph, identify the area of total revenue associated with 9 and 10 units of output. Is marginal revenue of the tenth unit positive or negative?
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At Q = 2, TR = $20 (area A + B). At...View Answer
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