Graphically Profit=(Pe-ATC)×Q MC ATC AVc pe=Df= MR ATC Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Graphically $ Qf ATC AVC MC P e = Df = MR Qf* ATC P e Profit = (P e - ATC)  Qf*