PROFIT

1
Price/Costs
MC
ATC
P
D MR AR
PROFIT
AVC
Quantity
2
Price/Costs
MC
ATC
AVC
LOSS
P
D MR AR
Quantity
3
Long run Equilibrium Economic Profit Zero
Price/Costs
MC
ATC
AVC
P
D MR AR
Quantity
4
Price/Costs
MC
ATC
AVC
LOSS Not covering Variable costs. SHUT DOWN!
P
D MR AR
Quantity
5
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