14. Profit maximization and shutting down in the short run The following graph plots daily cost curves for a firm operating in the competitive market for rompers. The graph plots the marginal cost (M C) curve, average total cost (A T C) curve, and average variable cost (A V C) curve for a firm operating in the competitive market for rompers. The costs in dollars is on the vertical axis and quantity in thousands of rompers is on the horizontal axis. The vertical axis ranges between zero and 50 in increments of 2.5 and the horizontal axis ranges from zero to 20 in increments of 1. All three curves are concave up. The A V C curve passes through the following points: (2, 20.5), (4.5, 15), (15/2, 12.50), (10, 14.00), (12, 17.50), (16, 32), and ((18, 42). The M C curve crosses the A V C curve at the point (15/2, 12.50), and crosses the A T C curve at the point (10000, 27.50). The A T C curve lies above the A V C curve, and reaches it's minimum at the point of intersection with the M C curve: (10000, 27.50). 0 2 4 6 8 10 12 14