please show me if i graphed correctly for the profit graph, please help me graph the marginal revenue and marginal cost and also please fill in the blanks 3. Profit maximization using total cost and total revenue curvesSuppose Iyana operates a handicraft pop-up retail shop that sells rompers. Assume a perfectly competitive market structure for rompers with amarket price equal to $25 per romper.The following graph shows Iyana's total cost curve.Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for rompers for quantities zero throughseven (including zero and seven) that Iyana produces.TOTAL COST AND REVENUE (Dollars)20017515012510075500-2501A231635QUANTITY (Rompers)4D6ATotal Cost78oTotal Revenue▲Profit Calculate Iyana's marginal revenue and marginal cost for the first seven rompers they produce, and plot them on the following graph. Use the bluepoints (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.COSTS AND REVENUE (Dollars per romper)403530255105001235QUANTITY (Rompers)4678Marginal RevenueMarginal CostIyana's profit is maximized when they produce a total of$, an amountrompers. At this quantity, the marginal cost of the final romper they produce isthan the price received for each romper they sell. At this point, the marginal cost of producing one more romper(the first romper beyond the profit maximizing quantity) is $, an amountthan the price received for each romper they sell.Therefore, Iyana's profit-maximizing quantity occurs at the point of intersection between theBecause Iyana is a price taker, the previous condition is equivalent tocurves.

Profit maximizing firm in a market optimizes its profits at the point where marginal revenue is…

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

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

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 1E

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