3. Profit maximization using total cost and total revenue curves Suppose Yakov runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Yakov's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Yakov produces. 200 O 175 Total Revenue 150 A 125 Total Cost Profit 100 O TOTAL COST AND REVENUE (Dollars) 75 50 0 25 O -25 1 2 3 4 5 6 7 8 QUANTITY ( Shirts)Calculate Yakov's marginal revenue and marginal cost for the rst seven shirts he produces, 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 - -.- 35 - 5:: Marginal Revenue .2 f 30 3 -I- E L\" _ g 25 Marginal Cost e Z 20 - LLI > LLI 0: 15 - a z