The graph to the right shows a firm in a perfectly competitive market making a profit. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve. 

Assume the market price is $32. 

1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'. 

2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'. 

3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area.

Carefully follow the instructions above, and only draw the required objects.

 

48 MC 44- 40- 36- 32 ATC 28- AVC 24 20- 16- 12- 8- 4- Quantity Price and cost