Xvidios » Videos » Calculate Noah's marginal revenue and marginal cost for the first seven dog treats 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. Marginal Revenue Marginal Cost 0 1 2 3 4 5 6 7 8 40 35 30 25 20 15 10 5 0 COSTS AND REVENUE (Dollars per dog treat) QUANTITY (Dog treats) Noah's profit is maximized when they produce a total of dog treats. At this quantity, the marginal cost of the final dog treat they produce is , an amount than the price received for each dog treat they sell. At this point, the marginal cost of producing one more dog treat (the first dog treat beyond the profit maximizing quantity) is , an amount than the price received for each dog treat they sell. Therefore, Noah's profit maximizing quantity occurs at the point of intersection between the curves. Because Noah is a price taker, the previous condition is equivalent to .
Calculate Noah's marginal revenue and marginal cost for the first seven dog treats 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.Marginal RevenueMarginal Cost0123456784035302520151050COSTS AND REVENUE (Dollars per dog treat)QUANTITY (Dog treats)Noah's profit is maximized when they produce a total of dog treats. At this quantity, the marginal cost of the final dog treat they produce is , an amount than the price received for each dog treat they sell. At this point, the marginal cost of producing one more dog treat (the first dog treat beyond the profit maximizing quantity) is , an amount than the price received for each dog treat they sell. Therefore, Noah's profit maximizing quantity occurs at the point of intersection between the curves. Because Noah is a price taker, the previous condition is equivalent to .HD