11. Profit maximization using total cost and total revenue curves

Suppose Madison operates a handicraft pop-up 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 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 phone cases for quantities zero through seven (including zero and seven) that Madison produces.

TOTAL COST AND REVENUE (Dollars) 200 1T5 \"150 \"125 \"100 -..4 U! U'! D M 0'! 2 3 4 5 QUANTITY (Phone cases) 6 Total Cost + Total Revenue A Prot COSTS AND REVENUE [Dollars per phone case) 40 35 30 25 20 15 1O 3 4 5 QUANTITY (Phone cases) + Marginal Revenue -I- Marginal Cost