Question

suppose antonio runs a small business that manufactures shirts. assume that the market for shirts is a perfectly competitive market, and the market price is $25 per shirt. the following graph shows antonios 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 shirts that antonio produces, including zero shirts. plots: (0,20) (1,40) (2,50) (3,55) (4,65) (5,80) (6,100) (7,130)

Explanation:

Step1: Calculate total revenue formula

Total revenue ($TR$) is given by the formula $TR = P\times Q$, where $P$ is the price per - unit and $Q$ is the quantity. Here, $P = 25$ dollars per shirt.

Step2: Calculate total revenue for each quantity

For $Q = 0$, $TR_0=25\times0 = 0$; for $Q = 1$, $TR_1=25\times1 = 25$; for $Q = 2$, $TR_2=25\times2 = 50$; for $Q = 3$, $TR_3=25\times3 = 75$; for $Q = 4$, $TR_4=25\times4 = 100$; for $Q = 5$, $TR_5=25\times5 = 125$; for $Q = 6$, $TR_6=25\times6 = 150$; for $Q = 7$, $TR_7=25\times7 = 175$.

Step3: Calculate profit formula

Profit ($\pi$) is given by the formula $\pi=TR - TC$, where $TC$ is the total cost.
For $Q = 0$, $TC_0 = 20$, $\pi_0=0 - 20=-20$; for $Q = 1$, $TC_1 = 40$, $\pi_1=25 - 40=-15$; for $Q = 2$, $TC_2 = 50$, $\pi_2=50 - 50 = 0$; for $Q = 3$, $TC_3 = 55$, $\pi_3=75 - 55 = 20$; for $Q = 4$, $TC_4 = 65$, $\pi_4=100 - 65 = 35$; for $Q = 5$, $TC_5 = 80$, $\pi_5=125 - 80 = 45$; for $Q = 6$, $TC_6 = 100$, $\pi_6=150 - 100 = 50$; for $Q = 7$, $TC_7 = 130$, $\pi_7=175 - 130 = 45$.

Answer:

Total revenue points: $(0,0),(1,25),(2,50),(3,75),(4,100),(5,125),(6,150),(7,175)$
Profit points: $(0, - 20),(1,-15),(2,0),(3,20),(4,35),(5,45),(6,50),(7,45)$