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Question: profit maximization using total cost and total retenue cures...

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● Profit maximization using total cost and total retenue cures uppese Raphaed funs a smail business that manufacturs frying pars. Assume that the markat for frying pans is a compatitive market, and h markst price is $20 par frying pan. Tha folawing graph shows Raphaes tetal cost curw. Ch Bl points feiro smdol) to plet total renwand t savan fnce that Rapuvil prooees greer paints (triangie symbo) to plot prohe fer frying pans qumbiies zro through QUANTITY (Frying pana) Ca aiae suapftoois marginal rwenue and margital cost for the firat savan frying pana hi produces, and put him ณ, the foloang graph use the points ferele smbolj to plot magial revnua and the orange points (squure symbe) to plot margina cost at wach quantity Margral Con CUANTITY(Frying pana Raghadls profit is maximized when he producefrying pars. When he does this, the marginal cest of the last frying pan he produces which is tha Uh price Raphad cs far each frying pan he seils. The marginal cast of preducig an addtional frying pan (เhat is, one more frying pan than waid maximize hisaruk)s which ị. he sals. Therafare, Raphas prefit maximigqantky corespands to Uhe itersectian ef t Because Rapha is a prike takar, ths last condtien can also be writta as . than the price Raphael receives for ad, frying pan

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