Diagram 10.1 Dow nw ard sloping De m and curve pu 500-2Q a200 0 125 20 250 q- units of output Diagram 10.2 Total Re e curve 32D00 28000 TR=(s00-2q) 12000 8000 4000 0 25 00125150175200 25250 nits
(c)The Marginal Revenue Curve 口MR=ATR/△q SOO 498 48 e 23012 互4名之 4002000O 39e 28三3 24 2523王248 2A8 2463之A2 28 之443主2 32 e∈ 33s2 48 249 之
◼ (c) The Marginal Revenue Curve ❑ MR = TR / q
tR curve is rising----MR is positive TR curve is falling----MR is negative 口 MR curve for a straight line demand curve, the associated MR curve has the same intercept but slopes down twice as quickly as the linear demand curve ■MR=500-4q mr curve is the first order derivative of the tr curve that is o mr= d(TR)/dq
◼ TR curve is rising ---- MR is positive ◼ TR curve is falling ----MR is negative ❑ MR curve ◼ for a straight line demand curve , the associated MR curve has the same intercept but slopes down twice as quickly as the linear demand curve. ◼ MR = 500 - 4q ◼ MR curve is the first order derivative of the TR curve , that is : ❑ MR = d(TR)/dq
Diagram 10.3 Average and Marginal Reve nue Curves oooooooo AH=500-2q 265 1o0 175 -30o M5O0-44 q- units of output Diagram 10.2 TR=(5002q)q 255075100125150176200225 250 q- units of。 output