Answer the Following Questions

question 52

Essay

Answer the following questions.
a. Graph the inverse demand curve P = 12 - Q. On your graph, identify the area of total revenue associated with 2 and then 3 units of output. Is marginal revenue of the third unit positive or negative?
b. Graph the inverse demand curve P = 12 - Q. On your graph, identify the area of total revenue associated with 9 and 10 units of output. Is marginal revenue of the tenth unit positive or negative?

---

Definitions:

Budgeted Volume

The predicted amount of work, sales, or production a company plans to achieve within a certain period, usually used for planning and performance evaluation.

Expected Sales

Projected revenue that a company anticipates earning from the sale of goods or services in a future period.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Master Budget

An all-encompassing financial plan for an organization, covering all of its operations and financial activities within a specific period.