The demand curve for a firm’s output is represented by the following table:
Unit 1: Total revenue = 1 × 12 = 12; marginal revenue = 12 – 0 = 12.Unit 2: Total revenue = 2 × 11 = 22; marginal revenue = 22 – 12 = 10.Unit 3: Total revenue = 3 × 10 = 30; marginal revenue = 30 – 22 = 8.Unit 4: Total revenue = 4 × 9 = 36; marginal revenue = 36 – 30 = 6.
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