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TOTAL COST AND REVENUE (Dollars) 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 Madison produces. -25 200 175 100 75 50 QUANTITY (Cardigans) Total Cost ☐ Total Revenue Profit ? Calculate Madison's marginal revend marginal cost for the first seven cardigans they produce, and plot them on the following graph. Usp points (circle symbol) to plot margin venue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per cardigan) 15 40 0 1 2 4 5 8 QUANTITY (Cardigans) Marginal Revenue Marginal Cost Madison's profit is maximized when they produce a total of an amount cardigans. At this quantity, the marginal cost of the final cardigan they produce is 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 they sell. Therefore, Madison's profit-maximizing quantity occurs at the point of intersection between the than the price received for each cardigan curves. Because Madison is a price taker, the previous condition is equivalent to

TOTAL COST AND REVENUE (Dollars) 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 Madison produces. -25 200 175 100 75 50 QUANTITY (Cardigans) Total Cost ☐ Total Revenue Profit ? Calculate Madison's marginal revend marginal cost for the first seven cardigans they produce, and plot them on the following graph. Usp points (circle symbol) to plot margin venue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per cardigan) 15 40 0 1 2 4 5 8 QUANTITY (Cardigans) Marginal Revenue Marginal Cost Madison's profit is maximized when they produce a total of an amount cardigans. At this quantity, the marginal cost of the final cardigan they produce is 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 they sell. Therefore, Madison's profit-maximizing quantity occurs at the point of intersection between the than the price received for each cardigan curves. Because Madison is a price taker, the previous condition is equivalent to

Principles of Economics 2e
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 39P: The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total...
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TOTAL COST AND REVENUE (Dollars) 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 Madison produces. -25 200 175 100 75 50 QUANTITY (Cardigans) Total Cost ☐ Total Revenue Profit ? Calculate Madison's marginal revend marginal cost for the first seven cardigans they produce, and plot them on the following graph. Usp points (circle symbol) to plot margin venue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per cardigan) 15 40 0 1 2 4 5 8 QUANTITY (Cardigans) Marginal Revenue Marginal Cost Madison's profit is maximized when they produce a total of an amount cardigans. At this quantity, the marginal cost of the final cardigan they produce is 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 they sell. Therefore, Madison's profit-maximizing quantity occurs at the point of intersection between the than the price received for each cardigan curves. Because Madison is a price taker, the previous condition is equivalent to
Transcribed Image Text:TOTAL COST AND REVENUE (Dollars) 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 Madison produces. -25 200 175 100 75 50 QUANTITY (Cardigans) Total Cost ☐ Total Revenue Profit ? Calculate Madison's marginal revend marginal cost for the first seven cardigans they produce, and plot them on the following graph. Usp points (circle symbol) to plot margin venue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per cardigan) 15 40 0 1 2 4 5 8 QUANTITY (Cardigans) Marginal Revenue Marginal Cost Madison's profit is maximized when they produce a total of an amount cardigans. At this quantity, the marginal cost of the final cardigan they produce is 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 they sell. Therefore, Madison's profit-maximizing quantity occurs at the point of intersection between the than the price received for each cardigan curves. Because Madison is a price taker, the previous condition is equivalent to
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