Calculate Raphael'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.(?)COSTS AND REVENUE (Dollars per shirt)40353025201510500125QUANTITY (Shirts)34Raphael's profit is maximized when he produces67Iwould maximize his profit) is $which ismaximizing quantity corresponds to the intersection of thelast condition can also be written as8which isshirts. When he does this, the marginal cost of the last shirt he produces is $than the price Raphael receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt thanthan the price Raphael receives for each shirt he sells. Therefore, Raphael's profit-curves. Because Raphael is a price taker, thisMarginal RevenueMarginal Cost 3. Profit maximization using total cost and total revenue curvesSuppose Raphael runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20per shirt.The following graph shows Raphael's total cost curve.Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Raphaelproduces, including zero shirts.TOTAL COST AND REVENUE (Dollars)20017515012510075250-25012♫3 4 5QUANTITY (Shirts)6Total Cost☐7 8Total RevenueProfit?

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Calculate Raphael'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. ? COSTS AND REVENUE (Dollars per shirt) 40 35 30 25 20 15 10 5 0 0 1 2 3 4 5 QUANTITY (Shirts) 6 7 8 Marginal Revenue Marginal Cost Raphael'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 Raphael 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 Raphael receives for each shirt he sells. Therefore, Raphael's profit- maximizing quantity corresponds to the intersection of the curves. Because Raphael is a price taker, this last condition can also be written as

Calculate Raphael'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. ? COSTS AND REVENUE (Dollars per shirt) 40 35 30 25 20 15 10 5 0 0 1 2 3 4 5 QUANTITY (Shirts) 6 7 8 Marginal Revenue Marginal Cost Raphael'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 Raphael 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 Raphael receives for each shirt he sells. Therefore, Raphael's profit- maximizing quantity corresponds to the intersection of the curves. Because Raphael is a price taker, this last condition can also be written as

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
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