CENGAGE | MINDTAP Q Search th Homework (Ch 14) 3. Profit maximization using total cost and total revenue curves Suppose Iyana operates a handicraft pop-up retail shop that sells phone cases. Assume a perfectly competitive market structure for phone cases with a market price equal to $20 per phone case. The following graph shows Iyana's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for phone cases for quantities zero through seven (including zero and seven) that Iyana produces. (? 200 O 175 Total Revenue 150 Total Cost 125 AND REVENUE (Dollars) 100 Profit 75 OFMOLO 4 Apr 12 10:1-9781337096577&id=1990099147&snapshotld=38.. 8 19 0 : A ALEKS - Nicholas W. A ALEKS- Nicholas W. ALEKS - ONLLINE Q. ^ C4ELink: Log in to t. All Bookmarks CENGAGE | MINDTAP Q Search this course ? X Homework (Ch 14) n Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for phone cases for quantities zero through seven (including zero and seven) that Iyana produces. (? A-Z 200 175 Total Revenue 150 Total Cost 125 Profit 100 bongo TOTAL COST AND REVENUE (Dollars) At ? 25 3 5 V QUANTITY (Phone cases) Apr 12 10:11 9 0 MODO AD esc C backspace $ & K # 9 5v Mail - nicholas ware -( x | Welcome to Unify | Un x | Course Home x Brightspace/D2L: Mid x |vi MindTap Registration x MindTap - Cengage Le x + X G 2% ng.cengage.com/staticb/ui/evo/index.html?deploymentld=56736619720212108401873280819&elSBN=9781337096577&id=1990099147&snapshotid=38... # A ALEKS - Nicholas W. A ALEKS- Nicholas W. ALEKS-ONLINE Q. ( C4ELink: Log in to t. All Bookmarks CENGAGE | MINDTAP Q. Search this course ? Homework (Ch 14) X Calculate lyand's marginal revenue and marginal cost for the first seven phone cases they prouuce, and plot them on the ronowing graph. use trie blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. A-Z E 10 35 Marginal Revenue EI 30 Marginal Cost bongo COSTS AND REVENUE (Dollars per phone case 5 10 At ? 0 6 V QUANTITY (Phone cases) Apr 12 10:12 9 0 OFMODO esc - C Oil15 COSTS AND REVENUE 10 En 0 2 QUANTITY (Phone cases) Iyana's profit is maximized when they produce a total of phone cases. At this quantity, the marginal cost of the final phone case they produce 5 $ , an amount than the price received for each phone case they sell. At this point, the marginal cost of producing one more phone case (the first pho yond the profit maximizing quantity) is $ , an amount than the price received for each phone case they sell. Therefore, greater ofit-maximizing quantity occurs at the point of intersection between the less curves. Because Iyana is a price taker, the previous condition is equivalent to Grade It Now Save & Continue Continue without saving 4 esc C