Sketch the Total Revenue (TR), Marginal Revenue (MR), and Marginal Cost (MC) curves using the provided data points.

Question 7

To sketch the curves, we will use the values calculated in the previous question.

A. Total Revenue Curve (TR)
Plot the following points for Output (Q) on the x-axis and Total Revenue (TR) on the y-axis:

• (0, 0)
• (1, 16)
• (2, 30)
• (3, 42)
• (4, 52)
• (5, 60)
• (6, 66)
• (7, 70)
• (8, 72)
• (9, 72)
• (10, 70)

Connect these points with a smooth curve. The TR curve will start at the origin, increase, reach a maximum at Q=8 and Q=9, and then start to decrease.

B. Marginal Revenue Curve (MR)
Plot the following points for Output (Q) on the x-axis and Marginal Revenue (MR) on the y-axis:

• (1, 16)
• (2, 14)
• (3, 12)
• (4, 10)
• (5, 8)
• (6, 6)
• (7, 4)
• (8, 2)
• (9, 0)
• (10, -2) (This point will be below the x-axis)

Connect these points with a straight line. The MR curve will be a downward-sloping line, intersecting the x-axis at Q=9.

C. Marginal Cost Curve (MC)
Plot the following points for Output (Q) on the x-axis and Marginal Cost (MC) on the y-axis:

• (1, 8)
• (2, 5)
• (3, 2)
• (4, 2)
• (5, 1)
• (6, 4)
• (7, 8)
• (8, 10)
• (9, 14)
• (10, 16)

Connect these points with a smooth curve. The MC curve will initially decrease, reach a minimum between Q=4 and Q=5, and then increase.

You should now have three distinct curves drawn on your graph based on these points.