Marginal Cost Curves and Profit Maximization in Perfect Competition #3633485 (License: Personal Use)

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.