ate Ginny's marginal revenue and marginal cost for the first seven shirts she produces, and plot them on the foliowing graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 5 QUANTITY (Shirts) Ginny's profit is maximized when she produces which is than would maximize her profit) is s ]shirts. When she does this, the marginal cost of the last shirt she produces is S than the price Ginny receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt , which is than the price Ginny receives for each shirt she sells. Therefore, Ginny's profit- maximizing quantity corresponds to the intersection of the curves. Because Ginny is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per shirt)

ate Ginny's marginal revenue and marginal cost for the first seven shirts she produces, and plot them on the foliowing graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 5 QUANTITY (Shirts) Ginny's profit is maximized when she produces which is than would maximize her profit) is s ]shirts. When she does this, the marginal cost of the last shirt she produces is S than the price Ginny receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt , which is than the price Ginny receives for each shirt she sells. Therefore, Ginny's profit- maximizing quantity corresponds to the intersection of the curves. Because Ginny is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per shirt)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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