Calculate Kenji's marginal revenue and marginal cost for the first seven shirts he 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 35 Marginal Revenue Marginal Cost 0 3 1 4 5 6 8 7 QUANTITY (Shirts) , which is shirts. When he does this, the marginal cost of the last shirt he produces is $ Kenji's profit is maximized when he produces than the price Kenji receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than than the price Kenji receives for each shirt he sells. Therefore, Kenji's profit-maximizing curves. Because Kenji is a price taker, this last condition I which is would maximize his profit) is $ quantity corresponds to the intersection of the can also be written as 5 COSTS AND REVENUE (Dollars per shirt) 8 9 15 10 0 2 6

Calculate Kenji's marginal revenue and marginal cost for the first seven shirts he 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 35 Marginal Revenue Marginal Cost 0 3 1 4 5 6 8 7 QUANTITY (Shirts) , which is shirts. When he does this, the marginal cost of the last shirt he produces is $ Kenji's profit is maximized when he produces than the price Kenji receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than than the price Kenji receives for each shirt he sells. Therefore, Kenji's profit-maximizing curves. Because Kenji is a price taker, this last condition I which is would maximize his profit) is $ quantity corresponds to the intersection of the can also be written as 5 COSTS AND REVENUE (Dollars per shirt) 8 9 15 10 0 2 6

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 4CQQ

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