Jj.149. Calculate Amari's marginal revenue and marginal cost for the first seven cardigans they produce, and plot them on the following graph. Use the bluepoints (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.?COSTS AND REVENUE (Dollars per cardigan)4035001235QUANTITY (Cardigans)678Marginal RevenueMarginal Costcardigans. At this quantity, the marginal cost of the final cardigan they produce isAmari's profit is maximized when they produce a total of$ , an amountthan the price received for each cardigan they sell. At this point, the marginal cost of producing one morecardigan (the first cardigan beyond the profit maximizing quantity) is $, an amountthan the price received for each cardiganthey sell. Therefore, Amari's profit-maximizing quantity occurs at the point of intersection between thecurves. Because Amari is a price taker, the previous condition is equivalent to 11. Profit maximization using total cost and total revenue curvesSuppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with amarket price equal to $25 per cardigan.The following graph shows Amari's total cost curve.Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero throughseven (including zero and seven) that Amari produces.TOTAL COST AND REVENUE (Dollars)20017515012510075250-25012☐04■53QUANTITY (Cardigans)☐6Total Cost07 8Total RevenueProfit(?

Perfect competition is a market structure in which there are many buyers and sellers, and no…

Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market price equal to $25 per cardigan. The following graph shows Amari's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero through seven (including zero and seven) that Amari produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 80 2 0 & 0 O до 1 ДО 2 O □ 3 5 QUANTITY (Cardigans) 4 D 6 Total Cost 7 8 Total Revenue Profit (?

Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market price equal to $25 per cardigan. The following graph shows Amari's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero through seven (including zero and seven) that Amari produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 80 2 0 & 0 O до 1 ДО 2 O □ 3 5 QUANTITY (Cardigans) 4 D 6 Total Cost 7 8 Total Revenue Profit (?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

Jj.149.

Calculate Amari's marginal revenue and marginal cost for the first seven cardigans 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 cardigan)
40
35
0
0
1
2
3
5
QUANTITY (Cardigans)
6
7
8
Marginal Revenue
Marginal Cost
cardigans. At this quantity, the marginal cost of the final cardigan they produce is
Amari's profit is maximized when they produce a total of
$ , an amount
than the price received for each cardigan they sell. At this point, the marginal cost of producing one more
cardigan (the first cardigan beyond the profit maximizing quantity) is $
, an amount
than the price received for each cardigan
they sell. Therefore, Amari's profit-maximizing quantity occurs at the point of intersection between the
curves. Because Amari is a price taker, the previous condition is equivalent to

11. Profit maximization using total cost and total revenue curves
Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a
market price equal to $25 per cardigan.
The following graph shows Amari's total cost curve.
Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero through
seven (including zero and seven) that Amari produces.
TOTAL COST AND REVENUE (Dollars)
200
175
150
125
100
75
25
0
-25
0
1
2
☐
0
4
■
5
3
QUANTITY (Cardigans)
☐
6
Total Cost
0
7 8
Total Revenue
Profit
(?

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