11. Profit maximization using total cost and total revenue curves

Suppose Madison operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market price equal to $20 per cardigan.

The following graph shows Madison's total cost curve.

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.

CENGAGE |MINDTAP Q Search this course ? Module Five Quiz i X 40 35 Marginal Revenue A-Z 30 -0 25 Marginal Cost COSTS AND REVENUE (Dollars per cardigan) 20 15 10 5 bongo 0 0 1 2 3 4 5 6 7 8 QUANTITY (Cardigans)CENGAGE MINDTAP Q Search this course ? Module Five Quiz X ? 200 A-Z O 175 Total Revenue 150 Total Cost O A 125 Profit 100 TOTAL COST AND REVENUE (Dollars) 75 50 bongo 0 25 -25 0 1 2 3 4 5 6 7 8 QUANTITY (Cardigans)