Suppose Amy runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt.

The following graph shows Amy's total cost curve.

Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Amy produces.

Total RevenueProfit0123456782001751501251007550250-25TOTAL COST AND REVENUE (Dollars)QUANTITY (Shirts)Total Cost

Calculate Amy'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 at each quantity.

Marginal RevenueMarginal Cost0123456784035302520151050COSTS AND REVENUE (

11. Profit maximization using total cost and total revenue curves Suppose Amy runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Amy's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Amy produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 TOTAL COST AND REVENUE (Dollars) 75 50 -O 25 -25 2 6 7 QUANTITY ( Shirts ) Calculate Amy'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 at each quantity.Calculate Amy'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 at each quantity. Marginal Revenue 30 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 10 2 3 5 6 7 QUANTITY (Shirts) Amy's profit is maximized when she produces shirts. When she does this, the marginal cost of the last shirt she produces is $ I, which is than the price Amy receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shir uld maximize her profit) is $ ,which is than the price Amy receives for each shirt she sells. Therefore, Amy greater aximizing quantity corresponds to the intersection of the curves. Because Amy is a pri less his last condition can also be written as Grade It Now Save & Continue Continue without savingCalculate Amy'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 at each quantity. 10 O- 35 Marginal Revenue 30 -0- 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 5 total cost and total revenue 3 5 6 7 total revenue and profit QUANTITY (Shirts) total cost and profit marginal cost and total revenue Amy's profit is maximized when she produces shirts. When she does this, the mat marginal cost and marginal revenue es is $ I, which is than the price Amy receives for each shirt she sells. TH onal shirt total cost and marginal revenue (that is, one more shirt than would maximize her profit) is |$ I, which is shirt she sells. Therefore, Amy's profit-maximizing quantity corresponds to the intersection of the curves. Because Amy is a price taker, this last condition can also be written as Grade It Now Save & Continue Continue without savingCalculate Amy'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 at each quantity. 40 O 35 Marginal Revenue 30 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 10 0 2 5 7 QUANTITY (Shirts) Profit = MR - MC IC =TR MC = TR Amy's profit is maximized when she produces shirts. When she cost of the last shirt she produces is $ , which is than the price Amy receives for each Profit =TR-TC rginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is $ . whit the price Amy receives for each shirt she P = MC sells. Therefore, Amy's profit-maximizing quantity corresponds to the in curves. Because Amy is a price taker, this last condition can also be written as Grade It Now Save & Continue Continue without saving