Horizontal axis shows the quantity in newspapers per day, ranging from 0 to 500. The vertical axis shows the price and cost in cents per newspaper, ranging from 0 to 100 in increment of 20. A demand curve D is drawn diagonally downward between y=100 and x=500. The marginal revenue curve MR is also drawn diagonally downward below the D curve, between y=100 and x=250. A marginal cost curve MC is drawn diagonally upward starting from x=25.
The MC curve intersects the MR curve at (150, 40) and the D curve at (250, 50). A dotted line is drawn parallel to the y axis passing through the MC-MR intersection and cutting the D curve at (150, 70). A grey triangular is marked between these three points, and is labeled as 2). A blue rectangular area is marked ...
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