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Marginal Cost Curves and Profit Maximization in Perfect Competition #3633485 (License: Personal Use)
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This diagram depicts a firm operating under perfect competition, where the demand curve is perfectly elastic (AR = MR = P). Three marginal cost curves (MC1, MC2, MC3) illustrate how varying cost structures affect the profit-maximizing output level Q, all converging at the same price P due to market-determined pricing. The intersection of MR and each MC curve identifies the optimal quantity for that cost condition.
Used in economics education and business strategy resources to explain short-run profit maximization, cost behavior, and competitive market equilibrium; targets students, educators, and analysts seeking visual reinforcement of microeconomic theory.
Related Cliparts: Understand how firms determine optimal output using MR=MC rule. This graph illustrates three MC curves intersecting AR/MR to identify equilibrium price P and quantity Q.
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