3. Profit maximization using total cost and total revenue curves Suppose Ivana operates a handicraft popup retail shop that sells phone cases. Assume a perfectly.f competitive market structure for phone cases Iwith a market price equal to $20 per phone case. The following graph shows Iyana's total cost curve. Use the hl'ue points (circle symbol) to ptot tote;I revenue and the green points {trr'angl'e symbol) to pilot prot for phone cases for quantities zero through seven {including zero and seven) that Iyaha produces. Iyana's profit is maximized Ipyhen they produce a total of \\:|phone cases. At this quantity, the marginal cost of the nal phone case they produce is , an amount V than the price received for each phone case they sell. At this point, the marginal cost of producing one - d the prot maximizing quantity} is , an amount V than the price received for each greater more phone case (the rst phone - phone case they sell. Therefore, I t-maximizing quantity occurs at the point of intersection between the curves. Because Iyana is a price takerr the previous condition is equivalent to v Ql EHLEI Ivana's profit is maximized Iwhen theyr produce a total of |:|phone cases. At this quantity, the ma produce is , an amount v than the price received for each phone case the'iur sell. A: more phone case (the rst phone case beyond the prot maximizing quantity} is , an amount V than the price received for each of the nal phone case they.r the marginal cost of producing one phone case theyr sell. Therefore, Iyana's protmaximizing quantity.r occurs at the point of intersection between the v curves. Because Iyana is a price taker, the previous condition is equivalent to V total cost and total revenue total revenue and rot p roduce a total of E phone cases. At this quantitv, the marginal cost of the nal phone case the}.r total cost and marginal revenue V than the price received for each phone case they:r sell. At this point, the marginal cost of producing one nevond the prot maximizing quantity} is E , an amount v than the price received for each total cost and prot profitmaximizing ouantitv occurs at the point of intersection between the V curves. Because Ivana is a price taker, the previous condition is equivalent to V