-In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm average total cost is

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In a perfectly competitive market, the profit-maximizing rate of production is where the marginal cost (MC) intersects the market price (P), which is also the firm's marginal revenue (MR). At this point, the average total cost (ATC) gives the cost per unit at the profit-maximizing output. If the ATC is $7 at this output level, it means for each unit produced, the total cost on average is $7, indicating the firm covers its costs and may earn a profit if the price is higher than $7.

-In the Above Figure, at the Profit-Maximizing Rate of Production