**Homework (Ch 13)**Suppose Lorenzo runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear.The following graph shows Lorenzo's total cost curve.Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Lorenzo produces.**Graph Explanation:**- **X-Axis (Horizontal):** Represents the quantity of teddy bears produced, ranging from 0 to 8.- **Y-Axis (Vertical):** Represents the total cost and revenue in dollars, ranging from -25 to 200.- **Line: Total Cost (Orange line with square markers):** Shows the total cost associated with producing teddy bears. The cost increases as production quantity increases.- **Total Revenue:** To be plotted using blue circle symbols.- **Profit:** To be plotted using green triangle symbols.**Legend:**- Blue circle symbol represents Total Revenue.- Green triangle symbol represents Profit.The graph provides a basis for plotting additional points to visually compare total revenue and profit against total cost at varying quantities of teddy bears produced.

please find the answer below.The values for total cost can be read from the given graph. MC = TCn - TCn-1 Total Revenue = price * quantity MR =$20 through out Profit = TR - TC Quantity TC TR Profit MC MR 0 20 0 -20 - - 1 35 20 -15 15 20 2 40 40 0 5 20 3 45 60 15 5 20 4 55 80 25 10 20 5 70 100 30 15 20 6 95 120 25 25 20 7 125 140 15 30 20 The coordinates for the TR, profit, MC, and MR curves have been determined; display them against the respective output levels. The TR curve will be slanted upward. The profit curve will be curved like an inverted U. The MC curve will be in the shape of a U. At $20, the MR curve will be horizontal.

Business

Economics

Suppose Lorenzo runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Lorenzo's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Lorenzo produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 1 2 7 8 QUANTITY (Teddy bears) TOTAL COST AND REVENUE (Dollars)

Suppose Lorenzo runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Lorenzo's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Lorenzo produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 1 2 7 8 QUANTITY (Teddy bears) TOTAL COST AND REVENUE (Dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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