3. Profit maximization using total cost and total revenue curves Supgore Rian operatos a handicraft pop-up retal shop that seils phone cakts. Assume a perfectly competivive market structure for phone caset with a mariot peice equat to $25 per phone cave The foisoing graph shaws Aisi's total cost curye Use the bive points (cincle symbol) to plot fotat revenue and the green ponits (triangre symbol) to plot profic for phove cases lor quantitiei rero through seven \{including zere aad seven) that Rian procuces. Rian's profit is maximized when they produce a total of phone cases, At this quantity, the marginal cost of the final phone case they produce is , an amount. than the price received for each phone case they selli At this polint, the marginal cost of producing one more phone case (the first phone case beyond the profit maximiaing quantity) is, an amount than the grice recelved for each bhone case they sell. Therefore, Rlan's profit-maximizing quantity occurs at the point of intersection between the curves, Because Rian is a price takef, the previous condition is equivalent to