30 25 Marginal Revenue 20 Marginal Cost COSTS AND REVENUE (Dollars per teddy bear) 15 10 ? 0 2 3 4 5 6 QUANTITY (Teddy bears) Hilary's profit is maximized when she produces teddy bears. When she does this, the marginal cost of the last teddy bear she produces s $ , which is_ than the price Hilary receives for each teddy bear she sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize her profit) is |$ , which is _ than the price Hilary receives for each teddy bear she sells. Therefore, Hilary's profit-maximizing quantity corresponds to the intersection of the curves. Because Hilary is a price taker, this last condition can also be written as O X W Type here to search 4+ 194 3 15