Suppose Elieen 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 Elleen'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 Eileen produces, including zero frying pans. Calculate Elleen'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. Eileen's profit is maximized when she produces frying pans. When she does this, the marginal cost of the last frying pan she produces is which is than the price Elleen recelves for each frying pan she selis. The marginal cost of producing an additional frying pan (that is, one more frving pan than would maximize her profit) is , which is than the price Eileen recelves for each frying pan she selis. Therefore, Eileen's profit-maximizing quantity corresponds to the intersection of the curves. Because Elleen is a price taker, this last condition can also be written as