Horizontal axis shows quantity while the vertical axis shows price and cost. A straight line labeled as D is drawn diagonally downward starting from the y axis. Another curve labeled as MC is drawn on an upward slope, starting on the y axis closer to the zero point. A third line labeled as MR is drawn diagonally downward starting from the same point where the D curve starts. The MR curve intersects the MC curve at a point through which a dotted line is drawn parallel to the y axis. The dotted line cuts the D curve at a point whose coordinates are marked as (Qm, Pm).
The graph shows a fourth curve labeled as ATC which moves on a downward slope tangential to the D curve and then moves upwards. The ATC and D curves intersect at the same point whose ...
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