Let's consider a perfectly competitive firm and make a graph to illustrate its profit.

For this graphing assignment, illustrate a marginal cost curve, marginal revenue curve, and average total cost curve. Be sure to label each axis and all aspects of the graph.

The relationship between these curves should show the following:

1. The Marginal Revenue (MR) curve is positioned at a price of $12. (You don't have to scale the horizontal axis; simply mark the price of $12.)

2. Give the Marginal Cost (MC) curve its traditional shape. The MR and MC curves intersect at a quantity of 100. (You don't have to scale the horizontal axis; simply mark the quantity of 100.)

3. Position the Average Total Cost (ATC) curve such that the firm is shown to make a profit when producing 100 units at the price of $12.

4. Label or shade the area that represents the firm's profit.

5. If the ATC of making each of the units is $9, calculate the firm's total profit.