Answer:
Step-by-step explanation:
To explain the concept of marginal revenue graphically, we can use a table to represent a company's total revenue and output at different levels of production.
For example:
See the Table1
From this table, we can see that as the output increases from 1 unit to 2 units, the total revenue increases from $10 to $18, which represents a change in total revenue of $8. This change in total revenue is equal to the marginal revenue for the second unit of output.
Similarly, we can calculate the marginal revenue for each additional unit of output by comparing the change in total revenue from one output level to the next.
For example:
See the Table2
In this table, we can see that the marginal revenue decreases as the output increases. This is because as the output increases, it becomes more difficult and costly for the company to increase its total revenue by the same amount.
I hope this helps! Let me know if you have any other questions or need further assistance.