Let’s say the price of cotton is $7 per pound ,

a) graph the marginal revenue curve for cotton.

b) what amount of profit can Cotton, Inc. earn at the optimal level of output ?

c) let’s say the price drops to $6 per pound. Graph the marginal revenue curve for Cotton, Inc.

d) what amount of profit can Cotton, Inc. earn at the optimal level of output ?

e) let’s say the price drops to $5 per pound. Graph the marginal revenue curve for Cotton, Inc.

f) what amount of profit can Cotton, Inc. earn at the optimal level of output ?

g) let’s say the price drops to $3 per pound. Graph the marginal revenue curve for Cotton, Inc.

h) what amount of profit can Cotton, Inc. earn at the optimal level of output ?