Please help solve each part of equation and explain thank you 3. Profit maximization using total cost and total revenue curvesSuppose Rosa runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20per shirt.The following graph shows Rosa'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 Rosa produces.200175Total Revenue150Total Cost125Profit10075-253QUANTITY (Shirts)TOTAL COST AND REVENUE (Dollars) Calculate Rosa's marginal revenue and marginal cost for the first seven shirts she produces, 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.4035Marginal Revenue3025Marginal Cost2015103QUANTY (Shirts)Rosa's profit is maximized when she produces| shirts. When she does this, the marginal cost of the last shirt she produces is Swhichisthan the price Rosa receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt thanwould maximize her profit) is Swhich isthan the price Rosa receives for each shirt she sells. Therefore, Rosa's profit-maximizing quantity corresponds to the intersection of thecurves. Because Rosa is a price taker, this lastcondition can also be written asCOSTS AND REVENUE(Dollars per shirt)

Total revenue is defined as the sum of all incoming sources of money earned by the company through…

3. Profit maximization using total cost and total revenue curves Suppose Rosa 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 Rosa'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 Rosa produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 50 25 2 QUANTITY (Shirts) TOTAL COST AND REVENUE (Dollars)

3. Profit maximization using total cost and total revenue curves Suppose Rosa 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 Rosa'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 Rosa produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 50 25 2 QUANTITY (Shirts) TOTAL COST AND REVENUE (Dollars)

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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