Calculate Sharon's marginal revenue and marginal cost for the rst seven frying pans 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. @ 30 O 25 Marginal Revenue D 20 Marginal Cost 15 10001301300 COSTS AND REVENUE (Dollars per frying pan) 0 1 2 3 4 5 6 7 8 QUANTITY (Frying pans) Sharon's profit is maximized when she produces |:| frying pans. When she does this, the marginal cost of the previous frying pan she produces is , which is; reater/ lSthan the price Sharon receives for each frying pan she sells. The marginal cost of producing an additional frying pan (that is, one more frying pan than would maximize her prot) is , which isGreater/ |\"Ethan the price Sharon receives for each frying pan she sells. Therefore, Sharon's prot-maximizing quantity corresponds to the intersection of the '7 curves. Because Sharon is a price taker, this last condition can also be written as total cost and prot Prot = MR MC total cost and marginal revenue marginal cost and marginal revenue I lutal and mm Grade It Now Save 8: Continue marginal cost and total revenue Continue without saving TC = TR P=MC MC=TR halal Dust and total revenue Prot = TR TC 3. Profit maximization using total cost and total revenue curves Suppose Sharon runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $10 per frying pan. The following graph shows Sharon's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven frying pans that Sharon produces, including zero frying pans. 125 Total Cost 110 O 100 80 Total Revenue 75 60 Profit 50 30 30 TOTAL COST AND REVENUE (Dollars) 20 0 0 25 40 0 10 -25 -50 0 2 3 5 6 7 8 QUANTITY (Frying pans) Calculate Sharon's marginal revenue and marginal cost for the first seven frying pans 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