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(Dollars per romper) COSTS AND REVENUE 40 35 30 10 U 0 0 O 1 O 0 2 O L 4 O 0 O 0
(Dollars per romper) COSTS AND REVENUE 40 35 30 10 U 0 0 O 1 O 0 2 O L 4 O 0 O 0 3 5 QUANTITY (Rompers) 6 0 O 7 8 Marginal Revenue Marginal Cost Rian's profit is maximized when they produce a total of rompers. At this quantity, the marginal cost of the final romper they produce 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 beyond the profit maximizing quantity) is $ , an amount than the price received for each romper they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to
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