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3. Profit maximization using total cost and total revenue curves Suppose lyana operates a handicraft pop-up retall shop that selss cordigans. Assume a perrfectly competitive market structure for cardigans with a market price equal to $20 per cardigan. The following graph shows Iyana's total cost curve. Use the byee points (circle symbol) to plot total revenue and the green points (ciangle symbol) to plot pront for cardiganis for quaneibes zero through seven (including zero and seven) that fyana produces. Calculate lyana's marginal nevenue and marginal cost for the first seven cardigans they produce, and plot thein on the following graph, Use the blue points (circle symbol) to plof marginal revenee and the orange points (square symbol) to plot marginal cost at each quantity. lyana's profit is maximlzed when they produce a total of cardigans. At this quantity, the marginal cost of the finat cardigan they produce is an amount than the price recelved for each cardigan they sell, At this point, the marginal cost of producing one more cardigan (the first cardigan beyond the profit maximizing quantity) is, , an-amount than the price received for each cardigan they sell. Therefore, lyana's profit-maximizing quantity occurs at the point of intersection betwean the curves. Because tyana is a price takec, the previous condition is equivalent to

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