Computation of total revenue and marginal revenue

Reference no: EM1313118

Given the output (Q) and price (P) data in the following table, calculate total revenue (TR) and marginal revenue (MR):

Q	P	TR = P×Q	MR = ∂TR/∂Q
0	$10
1	9
2	8
3	7
4	6
5	5
6	4
7	3
8	2
9	1
10	0

a. Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?

b. Why is marginal revenue less than average revenue at each price level?

Reference no: EM1313118

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