3.

05 Marginal Cost Analysis

Name: Michael Valarezo

Step Five: Answer the following questions.

a) What product market did you choose for this data to represent? Explain why. (tip: look at prices)
Iphone cases are a realistic product that matches the prices with the data shown in the graph.
b) Where does marginal cost nearly equal marginal revenue without exceeding it? Highlight this point on
your graph.

As you can see in the graph between the numbers 112 and 72 which is the profit, that is where the marginal
revenue and marginal cost meet at the 6th point

c) If you were in business for this product, at which price and quantity level would you sell? Explain why.
(tip: look at the highest profit point to see best price)

I will sell a quantity of 5, for 74 dollars. This will give me the highest profit available in this business.