The horizontal axis shows output (customers per week) ranging from 0 to 35,000 in increment of 5,000. The vertical axis shows average total cost (dollars per customer) ranging from 0 to 2.00 in increment of 1.00. The graph shows two U shaped ATC curves. The smaller ATC curve is labeled as ATC-7-eleven and the larger ATC curve is labeled as ATC-Walmart. The two curves intersect at a point whose x coordinate is marked as “Q”. The first part of ATC-7-eleven curve before the intersection and the last part of ATC-Walmart curve after the intersection are highlighted in dark blue color. A dark blue W shaped curved is formed between these two intersecting curves, and is labeled as LRAC.

The lowest point of the ATC-7-eleven curve has the coordinates (5,000, ...

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