a. At what price range will this firm be making profits? Explain your answer. [2 points]b. At what price range will this firm be minimizing losses? Explain your answer. [2 points]c. Under what circumstances (i.e., below what price) should this firm shut down in the short run?Explain your answer. [2 points]

The figure below shows cost curves for a perfectly competitive firm. Refer to the figure to answer the questions that follow. $ SMC 2.60 ATC AVC 1.60 Price and cost (dollars) 1.50 0.80 0.70 0.60 0 500 800 1100 Output