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3. Profit maximization using total cost and total revenue curvesSuppose Carlos runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a perfectlycompetitive market, and the market price is 25 per teddy bear.The following graph shows Carlos's 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 teddybears that Carlos produces, including zero teddy bears.Calculate
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SOLVED: Question points) The assumption of profit maximization; where profit (1) is equal to the difference between total revenue TR) and total cost (TC): is frequently used in microeconomics To maximize profit; the firm selects the output level (Q where marginal revenue (MR) equals marginal cost (MC) [2] a) Determine TR from the demand function P = 10 where P is price 1,000[2] b) Find the associated MR function [2] c) Obtain the MC function from the TC function; TC(Q) = 5,000 2Q [2] d) At wha
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