Question

 the left-hand side of the following graph shows market demand and supply curves in a competitive market. draw the demand facing a competitive firm selling in this market on the right-hand graph. a) what is the firm’s marginal revenue from selling the 200th unit of output? b) what is the firm’s marginal revenue from the 400th unit of output?

Answer 1

The demand facing a competitive firm is a downward-sloping curve or line.

To find the firm's marginal revenue we should calculate total revenue TR = P×Q, and $MR = \Delta TR/\Delta Q.$