Suppose Rian 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 following graph shows Rian'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 Rian produces. 200 O 175 Total Revenue 150 Total Cost 125 Profit 100 TOTAL COST AND REVENUE (Dollars) 75 50 25 25 2 3 5 7 8 QUANTITY (Phone cases)Calculate Rian'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 35 Marginal Revenue 30 -O 25 Marginal Cost COSTS AND REVENUE (Dollars per phone case) 20 15 10 5 0 2 5 7 QUANTITY (Phone cases) Rian'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 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 than the price received for each phone case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent toRian'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 than the price received for each phone case they sell. At this point, the marginal cost of producing one more phone case (the first pho yond the profit maximizing quantity) is $ QUnoUE UE . than the price received for each phone case they sell. Therefore, greater fit-maximizing quantity occurs at the point of intersection between the less curves. Because Rian is a price taker, the previous condition is equivalent togreater Rian's profit is maximized when they produce a total of phone cases. At this quantity, the cost of the final phone case they produce less is $ an amount than the price received for each phone case they sell. At the e marginal cost of producing one more phone case (the first phone case beyond the profit maximizing quantity) is |$ an amount than the price received for each phone case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent tototal revenue and profit 5 7 total cost and marginal revenue ne cases) total cost and total revenue marginal cost and marginal revenue oduce a total of phone cases. At this quantity, the marginal cost of the final phone case they produce marginal cost and total revenue than the price received for each phone case they sell. At this point, the marginal cost of producing one more d the profit maximizing quantity) is |$ an amount than the price received for each phone total cost and profit maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to1 2 3 4 5 7 QUANTITY (Phone cases) Profit = MR - MC P = MC MC =TR Rian's profit is maximized when they produce a total of phone cases. At this quantity, the marginal cost of the fine is $ an amount than the price received for each phone case they sell. At this point, the marginal cos TO = TR phone case ( the first phone case beyond the profit maximizing quantity) is |$ an amount V than the pr Profit = TR - TO case they sell. Therefore, Rian's profit-maximizing quantity occurs at the point of intersection between the curves. Because Rian is a price taker, the previous condition is equivalent to