3. Profit maximization using total cost and total revenue curves Supoose Madison operates a handicraft pop-up retail shop that sells rompers. Assume a perfectiy competitive market structure for rompers with a market price equal to $20 per romper. The following graph shows Madison's total cost curvt. Use the Blwe points (corcle symbol) to plot fotal revenue and the preen points (Crangle symbol) to ploc profic for rompers for quaticties zero through seven (inctuding zero and seven) that Madoon produces. Study Tools (?) Total Revenue Total Cost Proft back QUANTITY' (Rompers) Calculate Madison's marginal revenue and marginal cost for the first seven rompers they produce, and plot them on the following graph. Use the blue points (orcle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. Madison's profit is maximited when they produce a total of rompers. At this cuantity, the marginal cost of the final romper they peoduce is an amount than the price received for each romper they sell. At this point, the marginal cost of producing one more romper (the first romper bevond the profit maximizing quantity) is , an ameunt. than the price recelved for each romper they sell. Therefore. Madison's orofit-maximizing quantity occurs at the point of intersection between the curves. Because Madison is a price taker, the prevous condition is equivalent to