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Class 12
Micro Economics
Non-competitive Markets
from the schedule provided below calculate the tot...

Question:
From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

Quantity

1

2

3

4

5

6

7

8

9

Marginal

Revenue

10

6

2

2

2

0

0

0

-

Answer:

Quantity	MR	TR	AR=TR/Q	Price elasticity of demand
1	10	10	10/1 = 10	-
2	6	10 + 6 = 16	16/2 = 8	½ * 10/1 = 5
3	2	16 + 2 = 18	18/3 = 6	½ * 8/2 = 2
4	2	18 + 2 = 20	20/4 = 5	1/1 * 6/3 = 2
5	2	20 + 2 = 22	22/5 = 4.4	1/0.5 * 5/4 = 2.5
6	0	22 + 0 = 22	22/6 = 3.6	1/0.9 * 4.5/5 = 1
7	0	22 + 0 = 22	22/7 = 3.1	1/0.5 * 3.6/6 = 1.2
8	0	22 + 0 =22	22/8 = 2.7	1/0.4 * 3.1/7 = 11
9	-5	22 + (-5) = 17	17/9 = 1.9	1/0.8 * 2.7/9 = 0.38

Demand Curve: To determine the demand curve, we must first determine the pricing for each unit of quantity. This can be accomplished by multiplying the total revenue values by the quantity. The following are the price ranges:

Quantity	Marginal revenue	Total revenue	Price
1	10	10	10
2	6	16	8
3	2	18	6
4	2	20	5
5	2	22	4.4
6	2	22	4.4
7	0	22	3.66
8	0	22	3.14
9	0	22	2.75
10	-5	17	1.88

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Question:
From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

Quantity

1

2

3

4

5

6

7

8

9

Marginal

Revenue

10

6

2

2

2

0

0

0

-

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Question: From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand: Quantity 1 2 3 4 5 6 7 8 9 Marginal Revenue 10 6 2 2 2 0 0 0 -

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Question:
From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

Quantity

1

2

3

4

5

6

7

8

9

Marginal

Revenue

10

6

2

2

2

0

0

0

-