The marginal cost, marginal revenue, and demand curves for Houston Home and Garden’s delux...

The marginal cost, marginal revenue, and demand curves for Houston Home and Garden’s deluxe wheelbarrow are shown in the graph below.

Required:

Before completing any of the following requirements, read over the entire list.

1. Trace the graph onto a blank piece of paper, and label all parts of the graph.

2. Draw a companion graph directly above the traced graph. Use this graph to draw the firm’s total revenue and total cost curves.

3. Show the company’s profit-maximizing price on the lower graph and its profit-maximizing quantity on both graphs.