8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the...

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8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the columns for TR and MR in the table below. (Note that the figures for MR are entered between 0 and 1, 1 and 2, 2 and 3, etc.): The demand curve for the product of firm T Price (AR) () Quantity (Units) 20 0 18 1 16 14 12 61 2 2 3 4 10 5 8 6 6 7 Total revenue (TR) () Marginal revenue (MR) () (b) What is the price elasticity of demand at P = 10?. (c) Over what price range is demand price elastic? . (d) Over what price range is demand price inelastic? . 8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the columns for TR and MR in the table below. (Note that the figures for MR are entered between 0 and 1, 1 and 2, 2 and 3, etc.): The demand curve for the product of firm T Price (AR) () Quantity (Units) 20 0 18 1 16 14 12 61 2 2 3 4 10 5 8 6 6 7 Total revenue (TR) () Marginal revenue (MR) () (b) What is the price elasticity of demand at P = 10?. (c) Over what price range is demand price elastic? . (d) Over what price range is demand price inelastic? .

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a To fill in the columns for TR and MR we can use the formula Total Revenue TR Price AR Quantity Uni... View the full answer