Angie Mae has just finished recording her latest CD. Her record company's marketing department determines that the demand for the CD is as follows: Marginal Total Revenue Price Number of CDs Revenue 24 10,000 22 20,000 20 30,000 18 40,000 16 50,000 14 60,000 1. Find total revenue for a quantity equal to 10,000, 20,000, and so on (write your answers on the third column of the table above). What is the marginal revenue for each 10,000 increase in the quantity sold (write your answers on the fourth column of the table above)?

Angie Mae has just finished recording her latest CD. Her record company's marketing department determines that the demand for the CD is as follows: Marginal Total Revenue Price Number of CDs Revenue 24 10,000 22 20,000 20 30,000 18 40,000 16 50,000 14 60,000 1. Find total revenue for a quantity equal to 10,000, 20,000, and so on (write your answers on the third column of the table above). What is the marginal revenue for each 10,000 increase in the quantity sold (write your answers on the fourth column of the table above)?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.1IP

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Calculating Price Elasticity