Profit maximization using total cost and total revenue curvesCharles's profit is maximized when he produces teddy bears. When he does this, the marginal cost of the last teddy bear he produces is $ , which is than the price Charles receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is $ , which is than the price Charles receives for each teddy bear he sells. Therefore, Charles's profit-maximizing quantity corresponds to the intersection of the curves. Because Charles is a price taker, this last condition can also be written as .