3. Profit maximization using total cost and total revenue curves Suppose Rian 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 $25 per phone case. The following graph shows Rian'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 Rian produces. Calculate Rian'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. phone case they sell. Ther n's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to phone case (the first phone case beyond the profit maximizing quantity) is, an amount than the price received for each phone case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to duce a total of phone cases. At this quantity, the marginal cost of the final phone case they produce chan the price received for each phone case they sell. At this point, the marginal cost of producing one more the profit maximizing quantity) is , an amount than the price received for each rofit-maximizing quantity occurs at the point of intersection between the Rian's profit is maximized when they produce a total of phone cases. At this quantity, the marginal cost of the fina is , an amount than the price received for each phone case they sell. At this point, the marginal cos phone case (the first phone case beyond the profit maximizing quantity) is, an amount than the pr phone case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to 3. Profit maximization using total cost and total revenue curves Suppose Rian 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 $25 per phone case. The following graph shows Rian'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 Rian produces. Calculate Rian'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. phone case they sell. Ther n's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to phone case (the first phone case beyond the profit maximizing quantity) is, an amount than the price received for each phone case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to duce a total of phone cases. At this quantity, the marginal cost of the final phone case they produce chan the price received for each phone case they sell. At this point, the marginal cost of producing one more the profit maximizing quantity) is , an amount than the price received for each rofit-maximizing quantity occurs at the point of intersection between the Rian's profit is maximized when they produce a total of phone cases. At this quantity, the marginal cost of the fina is , an amount than the price received for each phone case they sell. At this point, the marginal cos phone case (the first phone case beyond the profit maximizing quantity) is, an amount than the pr phone case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to