Figure 10-1 Short-run average total cost, average total cost, average variable cost refer to SMC, ATC, and AVC, respectively in the pure competition. SMC 2.60 ATC AVC 1.60 Price and cost (dollars) 1.50 0.80 0.70 0.60 500 800 1 100 Output (Figure 10-1) When the market price is $0.70: O The firm will produce 800 units of output O The firm will shut down in the short run O The firm's profit is -$450 O The firm will exit in the short run