1. Using a well-labeled diagram, illustrate the short-run cost curves for an enterprise experiencing diminishing marginal product. Your graph should include the following elements:

a. Clearly draw and label the Average Fixed Cost (AFC), Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC) curves. Indicate the relationships between these curves and explain how diminishing marginal product affects their shapes.

b. Demonstrate the implied supply curve of the firm. Explain how this curve is derived from the cost curves.

c. Identify and label the prices which prompt the firm to enter or exit the market, and the price that would lead to a shutdown. Explain the economic reasoning behind these prices and their impact on the firm's decisions.