Final answer:
To calculate marginal revenue, multiply the combinations of price and quantity to calculate total revenue. Then, divide the change in total revenue by the change in quantity to determine marginal revenue.
Step-by-step explanation:
To calculate marginal revenue, you need to determine the change in total revenue divided by the change in quantity. This can be done by multiplying the combinations of price and quantity at each point on the demand curve to calculate the total revenue, which is usually shown in a table or graph. The fourth column of the table represents the marginal revenue, which is the change in total revenue divided by the change in quantity.
For example, let's say a discounted movie theater sells tickets for $10 each on regular days and $5 each on discounted movie ticket Tuesdays. If on regular days they sell 100 tickets and make a total revenue of $1000, and on discounted movie ticket Tuesdays they sell 200 tickets and make a total revenue of $1000, then the change in total revenue is $1000 - $1000 = $0 and the change in quantity is 200 - 100 = 100. Therefore, the marginal revenue would be $0 divided by 100, which is equal to $0.