7. Consider the following information:

Daily Production and Costs at Jill’s Bread Bakers Quantity Produced Total Costs

(dozens of loaves) (dollars)

0 20 1 22 2 26 3 32 4 40 5 50 6 62 7 76

a. Calculate the marginal cost for Jill’s bread production.

b. Draw the supply curve for this firm.

c. Jill can sell as many loaves as she wants in the market at a price of $12 for a dozen loaves. How many loaves will she sell each day? What are her profits?

d. Use your diagram to show how much producer surplus Jill receives.