1. Business
  2. Economics
  3. please help me on these questions and explain the reasons...

Question: please help me on these questions and explain the reasons...

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3. Profit maximization using total cost and total revenue curves Suppose Hubert runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $10 per teddy bear The following graph shows Huberts total cost curve Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven teddy bears that Hubert produces, including zero teddy bears 125 Total Cost 100 Total Revenue a 75 Profit 50 25 O 0 4 5 QUANTITY (Teddy bears)

Calculate Huberts marginal revenue and marginal cost for the first seven teddy bears 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. 2 2 30 25 Marginal Revenue 20 Marginal Cost 10 6 QUANTITY (Teddy bears) Huberts profit is maximized when he produces teddy bears. When he does this, the marginal cost of the previous teddy bear he produces is 2 , which is less ▼ than the price Hubert receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is $ he sells. Therefore, Huberts profit-maximizing quantity corresponds to the intersection of the Because Hubert is a price taker, this last condition can also be written as , which is than the price Hubert receives for each teddy bear curves

Please help me on these questions, and explain the reasons

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1.

2.

3. Less/Greater

4.

5. Less/Greater

6.total cost and total revenue total cost and profit total cost and marginal revenue marginal cost and marginal revenue marginal cost and total revenue total revenue and profit he pr tional each t total cost and total revenue

7. MC = TR Profit = TR-TC Profit = MR-MC P=MC TC = TR h ch th

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