(Solved): Suppose Amari operates a handicaft pop-up retail shop that sells rompers. Assume a perfectly compet ...

Suppose Amari operates a handicaft pop-up retail shop that sells rompers. Assume a perfectly competitive market structure for rompers with a market price equal to \( \$ 20 \) per romper. The following graph shows Amaris total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for rompers for quantities zero through seven (including zero and seven) that Amari produces. Calculate Amari's marginal revenve and marginal cost for the first seven rompers they produce, and plot them on the following graph. Use the blue points (oirde symbol) to plot marginal revenue and the orange points (square symbol) to plot marginat cost at each quantity. Amaris profit is maximized when they produce a total of rompers. At this quantity, the marginal cost of the final romper they produce is , an amount than the price received for each romper they sell. At this point, the marginal cost of producing one more romper Therefore, Amaris profit-maximizing quantity occurs at the point of intersection between the Because Aman is a price taker, the previous condition is equivalent to