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Calculate Nick's marginal revenue and marginal cost for the first seven shirts he produces, 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. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 Customize and control Google Chrome 1 3 4 6 7 8 QUANTITY (Shirts) Nick's profit is maximized when he produces shirts. When he does this, the marginal cost of the last shirt he produces is $ which is than the price Nick receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize his profit) is $ which is than the price Nick receives for each shirt he sells. Therefore, Nick's profit-maximizing quantity corresponds to the intersection of the curves. Because Nick is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per shirt)

Calculate Nick's marginal revenue and marginal cost for the first seven shirts he produces, 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. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 Customize and control Google Chrome 1 3 4 6 7 8 QUANTITY (Shirts) Nick's profit is maximized when he produces shirts. When he does this, the marginal cost of the last shirt he produces is $ which is than the price Nick receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize his profit) is $ which is than the price Nick receives for each shirt he sells. Therefore, Nick's profit-maximizing quantity corresponds to the intersection of the curves. Because Nick is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per shirt)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Calculate Nick's marginal revenue and marginal cost for the first seven shirts he produces, 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. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 Customize and control Google Chrome 1 3 4 6 7 8 QUANTITY (Shirts) Nick's profit is maximized when he produces shirts. When he does this, the marginal cost of the last shirt he produces is $ which is than the price Nick receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize his profit) is $ which is than the price Nick receives for each shirt he sells. Therefore, Nick's profit-maximizing quantity corresponds to the intersection of the curves. Because Nick is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per shirt)
Transcribed Image Text:Calculate Nick's marginal revenue and marginal cost for the first seven shirts he produces, 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. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 Customize and control Google Chrome 1 3 4 6 7 8 QUANTITY (Shirts) Nick's profit is maximized when he produces shirts. When he does this, the marginal cost of the last shirt he produces is $ which is than the price Nick receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize his profit) is $ which is than the price Nick receives for each shirt he sells. Therefore, Nick's profit-maximizing quantity corresponds to the intersection of the curves. Because Nick is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per shirt)
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