PROFIT

1. QMAX Price/Costs MC ATC P D = MR = AR PROFIT AVC Quantity

2. QMAX Price/Costs MC ATC AVC LOSS P D = MR = AR Quantity

3. QMAX Long run Equilibrium: Economic Profit = Zero Price/Costs MC ATC AVC P D = MR = AR Quantity

4. QMAX Price/Costs MC ATC AVC LOSS Not covering Variable costs. SHUT DOWN! P D = MR = AR Quantity

5. QMAX Shut down point: P = Min AVC Price/Costs MC ATC AVC P D = MR = AR Quantity

6. Price/Costs MC ATC AVC P Quantity

7. Price/Costs MC ATC AVC P Quantity

8. Price/Costs MC ATC AVC P Quantity

9. Price/Costs MC ATC AVC P Quantity