Question

Use the demand curve below to answer questions 7 through 10.

Price
0.9-
0.8-
0.7-
OO
0.6+
0.5
0.4
0.3-
0.2-
0.1-
0+
0 1000 2000 3000 4000 5000 6000 7000 8000
Quantity
What's the marginal value at a quantity of 4,000?
Answer here

Answer 1

The marginal value at a quantity of 4,000, interpreted as marginal revenue, is $400 based on the given demand curve data.

Step-by-step explanation:

The question asks about finding the marginal value at a quantity of 4,000 based on a demand curve provided. To find it, we use the data that correlates with the total revenue (TR) and the marginal revenue (MR).

At a quantity (Q) of 4,000, the corresponding marginal revenue is 400, as per the data given.

Marginal revenue is calculated as the change in total revenue divided by the change in quantity.

Since the question specifically asks for marginal value, which in the context of a demand curve can be interpreted as marginal revenue, we can say that the marginal value at a quantity of 4,000 is $400.