Figure 4 48 in Section 4 4 shows the points, q 1 and q 2 , where marginal revenue equals marginal cost (a) On the graph of the corresponding total cost and total revenue functions in Figure 4 53, label the points q 1 and q 2 Using slopes, explain the significance of these points (b) Explain in terms of profit why one is a local minimum and one is a local maximum C(q) R(q) Figure 4 53 q (quantity)

Question: Figure 4.48 in Section 4.4 shows the points, q 1 and q 2 , where marginal revenue equals marginal cost.(a) On the graph of the

Figure 4.48 in Section 4.4 shows the points, q₁ and q₂, where marginal revenue equals marginal cost.(a) On the graph of the corresponding total cost and total revenue functions in Figure 4.53, label the points q₁ and q₂. Using slopes, explain the significance of these points.(b) Explain in terms of profit why one is a local minimum and one is a local maximum.

C(q) R(q) Figure 4.53 q (quantity)

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a See Figure 4107 We find q 1 and q 2 by checking to see where the slope of the tangent line to Cq is equal to the slope of Rq Because the slopes of C... View full answer

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