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Cost ($)
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   |                                                                 
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   |                                **SMC** (Marginal Cost)                                 
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   |                             ,-'     |     `-.                                 
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   |                          ,-'        |        `-.                              
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   |                       ,-'           |           `-.                           
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   |                    ,-'              |              `-. SAC (Average Cost)                    
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   |                 ,-'                 |                 `-.                     
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   |              ,-'                    |                    `-.                  
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   |           ,-'                       |                       `-.               
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   |        ,-'                          |                          `-.            
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   |     ,-'                             |                             `-.         
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   |  ,-'                     MIN COST → | ← SMC = SAC                    `-.      
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   |-'------------------------------------*------------------------------------`--- 
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   |                                      |                                      ` 
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   |                                      |                                        `.
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   |                                      | (Minimum SAC)                            \
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   |                                      Q* (Efficient Output)                        \ Quantity (Q)
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 0 +-----------------------------------------------------------------------------------------→