3. Profit maximization using total cost and total revenue curves Suppose Eleanor runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Eleanor'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 Eleanor produces. 200 175 Total Revenue 150 Total Cost 125 Proft Use the blue points (circle symbol) to olot total NUE (Dollars)

3. Profit maximization using total cost and total revenue curves Suppose Eleanor runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Eleanor'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 Eleanor produces. 200 175 Total Revenue 150 Total Cost 125 Proft Use the blue points (circle symbol) to olot total NUE (Dollars)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 5SCQ: Explain in words why a profit-maximizing film will not choose to produce at a quantity where...

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