11. Profit maximization using total cost and total revenue curves Suppose Ivana operates a handicraft popup retail shop that sells phone cases. Assume a perfectly competitive market structure for phone cases with a market price equal to $20 per phone case. The following graph shows Iyana's total cost curve. Use the hl'ue points (cr'rde symboU to plot totalI revenue and the green points (triangle symbo!) to pfot prot for phone cases for quantities zero through seven (Including zero and seven) that Irena produces. \fCalculate Iyana's marginal revenue and marginal cost for the first seven phone cases they produce, 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. 40 O 35 Marginal Revenue 30 25 Marginal Cost COSTSAND REVENUE (Dollars per phone case) 20 15 10 1 2 3 4 5 7 QUANTITY (Phone cases)Iyana's profit is maximized when they produce a total of |:|phone cases. At this quantity, the marginal cost of the nal phone case they produce is , an amount V than the price received for each phone case they sell. At this point, the marginal cost of producing one more phone case (the rst phone case beyond the prot maximizing quantity} is , an amount V than the price received for each phone case they sell. Therefore, Iyana's protmaximizing quantity occurs at the point of intersection between the v curves. Because Iyana is a price takerr the previous condition is equivalent to v