Shutdown Decision 1. The following cost function represents your nail salon, which operates in a competitive market: TC(Q) = 303 1802 + 500 + 50, where Q is pedicures offered per day. The corresponding cost curves and graph are below: 50 AFC = 3 AVG = 3oz 180 + 50 50 ATC=3QZ1EiQ+50+E MC=902360+50 $100 MC AVC 90 ATC 80 70 60 SO 40 30 20 10 AFC a. Suppose the market price is $30. Should this rm stay in business or shut down? How much should the rm produce, what price will they charge, and what will their prots be? Explain using concepts from class. Illustrate their prot or loss on the graph. b. What is this firm's short-run supply function? (hint: it should be a step function, P(Q,)). Also, highlight the short-run supply curve on your graph