Suppose Neha runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $25 per shirt. The following graph shows Neha'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 Neha produces. 200 O 175 Total Revenue 150 Total Cost 125 Profit 100 TOTAL COST AND REVENUE (Dollars) 25 O 25 2 6 7 QUANTITY (Shirts) Calculate Neha'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 Neha'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 O 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 10 3 5 7 8 QUANTITY (Shirts) Neha's profit is maximized when she produces |shirts. When she does this, the marginal cost of the last shirt she produces is $ , which is than the price Neha receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is |$ , which is _ than the price Neha receives for each shirt she sells. Therefore, Neha's profit- maximizing quantity corresponds to the intersection of the curves. Because Neha is a price taker, this last condition can also be written asCalculate Neha'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 -O 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 10 5 0 2 3 4 5 7 QUANTITY (Shirts) Neha's profit is maximized when she produces shirts. When she does this, the marginal cost of the last shirt she produces is $ , which is than the price Neha receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than w nize her profit) is $ , which is than the price Neha receives for each shirt she sells. Therefore, Neha's profit- m greater quantity corresponds to the intersection of the curves. Because Neha is a price taker, this lag less n can also be written asCalculate Neha'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 total revenue and profit 2 3 5 6 7 total cost and profit QUANTITY (Shirts) marginal cost and total revenue total cost and marginal revenue Neha's profit is maximized when she produces shit total cost and total revenue ost of the last shirt she produces is $ , which is than the price Neha receives for each shirt ng an additional shirt (that is, one more shirt than marginal cost and marginal revenue would maximize her profit) is |$ , which is ach shirt she sells. Therefore, Neha's profit- maximizing quantity corresponds to the intersection of the curves. Because Neha is a price taker, this last condition can also be written asCalculate Neha'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 -0 25 Marginal Cost COSTS AND REVENUE (Dollars per shirt) 20 15 10 0 3 Co QUANTIT Profit = TR - TC MC = TR P = MC Neha's profit is maximized when she When she does this, the marginal cost of the last shirt she produces is $ , which is than the price Neha Profit = MR - MC e sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is |$ than the price Neha receives for each shirt she sells. Therefore, Neha's profit- TC = TR maximizing quantity corresponds to curves. Because Neha is a price taker, this last condition can also be written as