Please solve the second image. 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)403530252015105001I23 4 5QUANTITY (Cardigans)an amount678Marginal RevenueJayden's profit is maximized when they produce a total of$cardigan (the first cardigan beyond the profit maximizing quantity) is $they sell. Therefore, Jayden's profit-maximizing quantity occurs at the point of intersection between thecurves. Because Jayden is a price taker, the previous condition is equivalent toMarginal Costcardigans. 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 morean 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)20017515012510075500-2501234 5QUANTITY (Cardigans)6Total Cost78OTotal RevenueProfit

Profit maximizing quantity is computed where MR= MC or the profit is maximum.For the price given:…

Suppose Jayden operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market 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 through seven (including zero and seven) that Jayden produces. 200 175

Suppose Jayden operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market 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 through seven (including zero and seven) that Jayden produces. 200 175

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 1E

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