Suppose Jayden 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 fallowing graph shows Jayden'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 Jayden produces. @ 200 O 175 = Total Revenue 5 150 a8 A w 125 > z Total Cost Profit a 100 + O m 4 S o = = a o % o a o 2 O = % 7 o e o 0+ 25 A 0 1 2 3 4 5 8 7 8 QUANTITY (Phone cases) Calculate Jayden's marginal revenue and marginal cost for the first seven phone cases they produce, 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. T a5 8 Marginal Revenue w & o = & e . Marginal Cost 3 2 w > = Yo w 4 Q 2w 2 8 s o o0 + + + 3 i 0 1 2 3 4 5 & 7 8 QUANTITY (Phone cases) Jayden'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 is , an amount W than the price received for each phone case they sell. At this point, the marginal cost of producing one more phone case (the first phone case beyond the profit maximizing quantity) is , an amount v than the price received for each phone case they sell. Therefore, Jayden's profit-maximizing quantity occurs at the point of intersection between the W curves. Because Jayden is a price taker, the previous condition is equivalent to W