(circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.COSTS AND REVENUE (Dollars per shirt)403500125QUANTITY (Shirts)34678Marginal Revenue0Marginal Cost(?)Edison's profit is maximized when he producesshirts. When he does this, the marginal cost of the last shirt he produces is $whichisthan the price Edison receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt thanwould maximize his profit) is $which is▼ than the price Edison receives for each shirt he sells. Therefore, Edison's profit-maximizing quantity corresponds to the intersection of thecurves. Because Edison is a price taker, thislast condition can also be written as 11. Profit maximization using total cost and total revenue curvesSuppose Edison runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is$25 per shirt.The following graph shows Edison's total cost curve.Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven(inclusive) that Edison produces.TOTAL COST AND REVENUE (Dollars)2001751501251000-25Ho0☐1☐2☐▬▬▬3 4 5QUANTITY (Shirts)■6Total Cost78OTotal RevenueProfit?

As per the question market type in the above scenario is perfectly competitive . Optimal…

Answered: s COSTS AND REVENUE (Dollars per shirt)…

Business

Economics

s COSTS AND REVENUE (Dollars per shirt) 8 8 O 5 2 Marginal Cost Marginal Revenue 1 1•1• 9 ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.
COSTS AND REVENUE (Dollars per shirt)
40
35
0
0
1
2
5
QUANTITY (Shirts)
3
4
6
7
8
Marginal Revenue
0
Marginal Cost
(?)
Edison'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 Edison 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 Edison receives for each shirt he sells. Therefore, Edison's profit-
maximizing quantity corresponds to the intersection of the
curves. Because Edison is a price taker, this
last condition can also be written as

11. Profit maximization using total cost and total revenue curves
Suppose Edison runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is
$25 per shirt.
The following graph shows Edison's total cost curve.
Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven
(inclusive) that Edison produces.
TOTAL COST AND REVENUE (Dollars)
200
175
150
125
100
0
-25
Ho
0
☐
1
☐
2
☐
▬▬▬
3 4 5
QUANTITY (Shirts)
■
6
Total Cost
7
8
O
Total Revenue
Profit
?

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