This problem gives you a preview of something you might see in a microeconomics class. Suppose there's an appliance store that sells air conditioners. It could set its price high and sell very few air conditioners, or it could set its price low and sell many more air conditioners. The following table shows some possible choices this store could make:
The graph below plots the firm's "total revenue" curve: that is, the relationship between quantity and total revenue given by the two right columns in the table above. The five choices are also labelled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D.
Using the information on the slope of the lines tangent to the total revenue curve at points B and D, plot the slope of the total revenue curve on the graph below. (As it turns out, it's a straight line, so the two points you plot will determine a line.)
The total revenue curve reaches its maximum at a quantity of 400 air conditioners per year. At this point, the slope of the total revenue curve is equal to zero.
(1) Total revenue (TR) curve is correctly drawn.
(2) Slope of TR curve is Marginal Revenue (MR), where
MR = Change in TR / Change in output (Q)
Between points B & A, MR = $(60,000 - 0) / (200 - 0) = $60,000 / 200 = $300
Between points E & D, MR = $(0 - 60,000) / (800 - 600) = -$60,000 / 200 = -$300
Slope of TR curve is drawn as follows (given graph is wrong).
(3) The TR curve reaches maximum at quantity of 400. At this point, slope of TR is zero.
Using the information on the slope of the lines tangent to the total revenue curve at points B and D, plot the slope of the total revenue curve on the graph below.
The total revenue curve reaches its maximum at a quantity of(200, 100, 300, 400) air conditioners per year. At this point, the slope of the total revenue curve is(negative, equal to zero, at it's maximium, positive, at it's minimum)This problem gives you a preview of something you might see in a microeconomics class. Suppose there's an appliance store that sells air conditioners. It could set its price high and sell very few air conditioners, or it could set its price...
Using the information on the slope of the lines tangent to the curve at points B and D, plot the slope of the total revenue curve on the graph below. (As it turns out, it's a straight line, so the two points you plot will determine a line.) The total revenue curve reaches its maximum at a quantity of _______ dishwashers per year. At this point, the slope of the total revenue curve is _______ .
Quantity (Air conditioners per year) Total Revenue (P xQ) so 36,000 $48,000 $36,000 so Choice (Dollars per air conditioner) $450 160 The graph belaw plots the firm's "total revenue" curve: that is, the relationship between quantity and total revenue given by the two right columns in the table above. The five choices are also labelled. Finally, two black lines are shown; these lines are tangent to the green curve at ports B and D. TOTAL REVENUE 0 4 0 120...
The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two right columns in the table above. The five choices are also labeled. Finally, two black lines are shown; these lines are tangent to the green curve at points B and D.
The graph below plots the firm's total revenue curve: that is, the relationship between quantity and total revenue given by the two righe columns in the table above. The five choices are also labeled. Finally, two black lines are showm; these lines are tangent to the green curve at points B and D .
ECON 2305 Tangent lines and the slope along a curve The blue curve on the following graph shows the height of an airplane over 10 minutes of flight. The two black lines are tangent to the curve at the points indicated by A and B. The slope of the blue curve measures the plane’s ( heading, altitude, rate of descent, time in the air). The unit of measurement for the slope of the curve is (miles per hour, degrees, thousands...
Refresh Your Math&Graphing Skills ollewing ta ole shows some possible choices this store could make Quantity (Air conditioners per year) Total Revenue (Px Q) (Dollars per year) Price (Dollars per air conditioner) 400 300 200 100 100 30,000 40,000 30,000 200 400 ph below plots the fem's total revenue curve: that is, the relationship between quantiy and total revenue given by the two right n the table above. The five choices are also labeled. Finally, two black lines are shown;...
Find the slope of the line tangent to f(x) at x = 3. The graph of f(x) is shown below. Move the point on the curve to x = 3. Then plot two points on the tangent line. Finally, calculate the slope of the tangent line at x = 3. Answer 2 Points Keypad Points can be moved by dragging or using the arrow keys. Any lines or curves will be drawn once all required points are plotted and will...
The blue curve on the following graph shows the height of an airplane over 10 minutes of flight. The two black lines are tangent to the curve at the points indicated by A and B. The slope of the blue curve measures the plane's _______ . The unit of measurement for the slope of the curve is _______ .At point A, the slope of the curve is _______, which means that the plane is _______ at a rate of _______ feet per minute. (Hint: Calculating...
The blue curve on the following graph shows the height of an airplane over 10 minutes of flight. The two black lines are tangent to the curve at the points indicated by A and B.The slope of the blue curve measures the plane's _______ . The unit of measurement for the slope of the curve is _______ .At point A, the slope of the curve is _______, which means that the plane is _______ at a rate of _______ feet per minute. (Hint: Calculating...