2. (8 points) Use the graph below for a perfectly competitive firm to answer the following questions MC $ ATC 4.50 AVC 3.50 . . ..... 3.00 . . . . . .' 150 175 200 q a. At which price, $4.50, $3.50, $3.00, is the firm earning economic profit? At which price is the firm breaking even? Would the firm choose to operate at a price of $3.25? Briefly explain your answers. b. If the price was 2.75, should this firm shut down? What is the firm's "shut down" price? Briefly explain your answers