The demand schedule for the product produced by a monopolist is given in the table below. Complete the table by computing total revenue and marginal revenue.
Quantity Total Marginal
demanded Price revenue revenue
1 $325 $______
2 300 ______ $______
3 275 ______ ______
4 250 ______ ______
5 225 ______ ______
6 200 ______ ______
7 175 ______ ______
8 150 ______ ______
9 125 ______ ______
10 100 ______ ______
11 75 ______ ______
12 50 ______ ______
13 25 ______ ______
14 0 ______ ______
(a) What do the data in the table indicate about the relationship between total revenue and marginal revenue? Explain.
(b) What do the data in the table indicate about the elasticity of demand?