$(15\%)$ Assume a competitive firm incurs fixed costs and increasing marginal cost. $($straight line$)$

$($a$)(11\%)$ Graphically illustrate the case in which the firm will make a short$-$run decision to shut down. $($Please label demand, MR$,$ MC$,$ ATC, AVC in the figure$)($Please employ U$-$shaped ATC and AVC to answer this question$)$

$($b$)(4\%)$ Based on your figure, please indicate the area representing the profit $($loss$)$ for the firm if the firm did not shut down $(2\%),$ and the profit $($loss$)$ if the firm did shut down. $($You may need to properly label your figure to answer this question.$)$