QUESTION 3 [20 Marks] 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm...

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QUESTION 3 [20 Marks] 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 P 245 210 175 0 129 MC ATC AVC D (3) (1) (1) (1) (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? (d) What type of market structure is represented by Figure 1? 2. Consider the graph below, which indicates the demand and cost structures of a monopolist firm and answer the questions that follow. QUESTION 3 [20 Marks] 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 P 245 210 175 0 129 MC ATC AVC D (3) (1) (1) (1) (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? (d) What type of market structure is represented by Figure 1? 2. Consider the graph below, which indicates the demand and cost structures of a monopolist firm and answer the questions that follow.