Start drawing a graph similar to Figure 3 on page four of Learning Unit 7. In the horizontal axis (Q), place the number of coffee cups in millions. Scale the vertical axis (representing the price per coffee cup, P) by $1 increments (from $0 to $5). The P intercept for both D and MR is $4. The Q-intercept for D is 80 million cups. This information should be sufficient for you to find the Q-intercept for MR. At Q = 30 million cups, MR = MC = $1. The profit-maximizing price = $2.50. Draw a point at the profit-maximizing price and quantity. Label it 1. Draw a point on the average total cost curve at the efficient scale. Label it 2. Draw an arrow to show the excess capacity