Suppose Brian runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Brian's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Brian produces. 200 O Total Revenue 150 Total Cost 125 Profit TOTAL COST AND REVENUE (Dollars) -25 QUANTITY (Frying pans) Calculate Brian's marginal revenue and marginal cost for the first seven frying pans he 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 DE Marginal Cost COSTS AND REVENUE (Dollars par frying pan) 5 QUANTITY (Frying pans) Brian's profit is maximized when he produces |frying pans. When he does this, the marginal cost of the last frying pan he produces is J. which is than the price Brian receives for each frying pan he sells. The marginal cost of producing an additional frying pan [that is, one more frying pan than would maximize his profit) is |s , which is than the price Brian receives for each frying pan he sells. Therefore, Brian's profit-maximizing quantity corresponds to the intersection of the curves. Because Brian is a price taker, this last condition can also be written as