Question: Observe the graph to the right. Based on the Short Run information provided with respect to Market Price, Average Variable Cost (AVC) Average, Total Cost

Observe the graph to the right. Based on the Short Run information provided with respect to Market Price, Average Variable Cost (AVC) Average, Total Cost [ATE], and Marginal Cost (MC), what asSumption would you make if the firm was selling its product at the market price MP\"? Ifthis were to continue for a long period what would typically happen? What is your opinion about shutting down production? PRICE Competitive Firm - Short Run QUANTITY

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