Aplia Homework: Chapter 14 Calculate Simone's marginal revenue and marginal cost for the first seven shirts she 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. 40 O 35 Marginal Revenue 30 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 10 3 6 QUANTITY (Shirts) Simone's profit is maximized when she produces shirts. When she does this, the marginal cost of the last shirt she produces is $ which is than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt over the amount that would maximize her profit) is |$ , which is than the price Simone receives for each shirt she sells. Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the curves. Because Simone is a price taker, this last condition can also be written as