602
1 point: Vertical axis is labeled “Price, cost of unit” or “Dollars per unit”; horizontal axis is labeled “Quantity” or “Q.”
1 point: Demand curve is horizontal and labeled with some combination of “P,” “MR,” or “D.”
1 point: MC is labeled and slopes upward in the shape of a swoosh.
1 point: Profit-
1 point: ATC is labeled and U-
1 point: ATC is above price at the profit-
1 point: MC crosses ATC at the lowest point on ATC.
1 point: AVC is labeled and U-
1 point: AVC is below price at the profit-
1 point: Loss rectangle is correctly located and identified.
Refer to the graph provided.