Calculate Madison's marginal revenue and marginal cost for the first seven phone cases they produce, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per phone case) 40 35 30 25 20 15 10 6 1 2 4 QUANTITY (Phone cases) 5 6 O Marginal Revenue Marginal Cost phone cases. At this quantity, an amount than the Madison's profit is maximized when they produce a total of the marginal cost of the final phone case they produce is $ price received for each phone case they sell. At this point, the marginal cost of producing one more phone case (the first phone case beyond the profit maximizing quantity) is $ , an amount than the price received for each phone case they sell. Therefore, Madison's profit- maximizing quantity occurs at the point of intersection between the curves. Because Madison is a price taker, the previous condition is equivalent to

Calculate Madison's marginal revenue and marginal cost for the first seven phone cases they produce, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per phone case) 40 35 30 25 20 15 10 6 1 2 4 QUANTITY (Phone cases) 5 6 O Marginal Revenue Marginal Cost phone cases. At this quantity, an amount than the Madison's profit is maximized when they produce a total of the marginal cost of the final phone case they produce is $ price received for each phone case they sell. At this point, the marginal cost of producing one more phone case (the first phone case beyond the profit maximizing quantity) is $ , an amount than the price received for each phone case they sell. Therefore, Madison's profit- maximizing quantity occurs at the point of intersection between the curves. Because Madison is a price taker, the previous condition is equivalent to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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113. Subject :- Economy