Calculate Jayden's marginal revenue and marginal cost for the first seven cardigans they produce, and plot them on the following graph. Use the bluepoints (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.?COSTS AND REVENUE (Dollars per cardigan)4035302515103100O12OnO4O035QUANTITY (Cardigans)6O78Marginal RevenueMarginal CostJayden's profit is maximized when they produce a total of$25 , an amount lesscardigan (the first cardigan beyond the profit maximizing quantity) is $they sell. Therefore, Jayden's profit-maximizing quantity occurs at the point of intersection between themarginal cost and marginal revenue curves. Because Jayden is a price taker, the previous condition is equivalent toP = MC6 cardigans. At this quantity, the marginal cost of the final cardigan they produce isthan the price received for each cardigan they sell. At this point, the marginal cost of producing one more, an amountthan the price received for each cardigan Suppose Jayden operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with amarket price equal to $25 per cardigan.The following 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 cardigans for quantities zero throughseven (including zero and seven) that Jayden produces.TOTAL COST AND REVENUE (Dollars)20017515012510075-25по0ДО120O☐O03 45QUANTITY (Cardigans)O06Total Cost78Total RevenueProfit

The goal of the firm is to maximize profits. In order to maximize profits, firm produces at the…

Calculate Jayden's marginal revenue and marginal cost for the first seven cardigans 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.

Calculate Jayden's marginal revenue and marginal cost for the first seven cardigans 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.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 1E

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