• The graph shows the average total cost (ATC) curve, the marginal cost (MC) curve, the average variable cost (AVC) curve, and the marginal revenue (MR) curve (which is also the market price) for a perfectly competitive firm that produces inorganic coffee beans. Answer the three accompanying questions, assuming that the firm is profit-maximizing and does not shut down in the short run. A graph with price on the vertical axis and quantity on the horizontal axis. The graph contains four lines; the marginal cost curve, the average total cost curve, the average variable cost curve and a price line. The price line is a perfectly horizontal line at a price of 500 dollars. The marginal cost curve follows all the main rules of cost curves and intersects the price line at a quantity of 260 and a price of 500 dollars. The average variable cost curve follows all the main rules of cost curves. It intersects the price line at a quantity of 365. It intersects the marginal cost curve at a quantity of 205 and a price of 375 dollars. The average total cost curve follows all the main rules of cost curves. It intersect marginal cost at a quantity of 336 and a price of 750 dollars. At a quantity of 260 it has a price of 815 dollar.