calculate rians marginal revenue and marginal cost for the first 7 phone cases they produce ans plot them on the graph.Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Homework (Ch 14)COSTS AND REVENUE (Dollars per phone case)4035302520151023QUANTITY (Phone cases),6Marginal venue-0-Marginal CostRian's profit is maximized when they produce a total of 5 phone cases. At this quantity, the marginal cost of the final phone case they producethan the price received for each phone case they sell. At this point, the marginal cost of producing one morephone case (the first phone case beyond the profit maximizing quantity) is$25, an amount greater than the price received for each phone$15, an amount lesscase they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection betweenthe marginal cost and marginal revenue. curves. Because Rian is a price taker, the previous condition is equivalent toP= MC

This can be described as the financial gain of a firm when the TR surpasses the level of the TC…

Answered: is Rian's profit is maximized when they…

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 rians marginal revenue and marginal cost for the first 7 phone cases they produce ans plot them on the graph.

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Homework (Ch 14)
COSTS AND REVENUE (Dollars per phone case)
40
35
30
25
20
15
10
2
3
QUANTITY (Phone cases),
6
Marginal venue
-0-
Marginal Cost
Rian's profit is maximized when they produce a total of 5 phone cases. At this quantity, the marginal cost of the final phone case they produce
than the 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
$25, an amount greater than the price received for each phone
$15, an amount less
case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between
the marginal cost and marginal revenue. curves. Because Rian is a price taker, the previous condition is equivalent to
P= MC

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