7. What constitutes a competitive firm's long-run supply curve? Explain. ---.. -~--~~ -_._-.. _-_.. _---_._------ You go to your campus bookstore and see a coffee mug emblazoned with your university's shield. It costs $5 and you value it at $8, so you buy it. On the way to your car, you drop it and it breaks into pieces. Should you buy another one or should you go home because the total expenditure of$10 now exceeds the place on it? Why? value that you Suppose the price for a firm's output is above the average variable cost ofproduction but below the average total cost ofproduction. Will the firm shut down in the short run? Explain. Will the firm exit the market in the long run? Explain.