For the Statement at the end, there are drop down arrows and options for you to choose from, and values to fill in. Drop down options will be listen in brackets, and blanks are values that must be found. Simone's profit is maximized when she produces _______shirts. When she does this, the marginal cost of the last shirt she produces is $_______ , which is (greater/less) than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt over the amount that would maximize her profit) is ________, which is (greater/less) than the price Simone receives for each shirt she sells. Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the (marginal cost and marginal revenue/ total cost and profit/ total cost and total revenue/ marginal cost and total revenue/ total revenue and profit/ total cost and marginal revenue) curves. Because Simone is a price taker, this last condition can also be written as ( MC=TR /Profit = TR - TC / P=MC / TC=TR / Profit = MR-MC) . Aplia Homework: Chapter 14Calculate Simone's marginal revenue and marginal cost for the first seven shirts she produces, 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.COSTS AND REVENUE (Dollars per shirt)40353025201510500125QUANTITY (Shirts)34678Marginal RevenueMarginal Costshirts. When she does this, the marginal cost of the last shirt she produces is $than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one morewhich isthan the price Simone receives for each shirt she sells.curves. BecauseISimone's profit is maximized when she produceswhich isshirt over the amount that would maximize her profit) is $Therefore, Simone's profit-maximizing quantity corresponds to the intersection of theSimone is a price taker, this last condition can also be written as ApliaHomework: Chapter 143. Profit maximization using total cost and total revenue curvesSuppose Simone runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is$20 per shirt.The following graph shows Simone's total cost curve.On the graph below, use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first sevenshirts that Simone produces, including zero shirts.TOTAL COST AND REVENUE (Dollars)200175150125100755025O-25OOU0 12U☐35QUANTITY (Shirts)46Total Cost78Total RevenueProfit(?)

Total revenue refers to the product of price and quantity . Profits are maximized at the point where…

Answered: For the Statement at the end, there are…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.1P

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For the Statement at the end, there are drop down arrows and options for you to choose from, and values to fill in. Drop down options will be listen in brackets, and blanks are values that must be found.

Simone's profit is maximized when she produces _______shirts. When she does this, the marginal cost of the last shirt she produces is $_______ , which is (greater/less) than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt over the amount that would maximize her profit) is ________, which is (greater/less) than the price Simone receives for each shirt she sells. Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the (marginal cost and marginal revenue/ total cost and profit/ total cost and total revenue/ marginal cost and total revenue/ total revenue and profit/ total cost and marginal revenue) curves. Because Simone is a price taker, this last condition can also be written as ( MC=TR /Profit = TR - TC / P=MC / TC=TR / Profit = MR-MC) .

Aplia Homework: Chapter 14
Calculate Simone'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.
COSTS AND REVENUE (Dollars per shirt)
40
35
30
25
20
15
10
5
0
0
1
2
5
QUANTITY (Shirts)
3
4
6
7
8
Marginal Revenue
Marginal Cost
shirts. When she does this, the marginal cost of the last shirt she produces is $
than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more
which is
than the price Simone receives for each shirt she sells.
curves. Because
I
Simone's profit is maximized when she produces
which is
shirt over the amount that would maximize her profit) is $
Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the
Simone is a price taker, this last condition can also be written as

Aplia
Homework: Chapter 14
3. Profit maximization using total cost and total revenue curves
Suppose Simone runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is
$20 per shirt.
The following graph shows Simone's total cost curve.
On the graph below, use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven
shirts that Simone produces, including zero shirts.
TOTAL COST AND REVENUE (Dollars)
200
175
150
125
100
75
50
25
O
-25
O
O
U
0 1
2
U
☐
3
5
QUANTITY (Shirts)
4
6
Total Cost
7
8
Total Revenue
Profit
(?)

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