a. For this firm, if P=$40, total revenue is _______, total cost is $____ and profit is $_____. b. For this firm, if P=$20, total revenue is _______, total cost is $____ and profit is $_____. c. If the price falls below $_____, the firm will shut down.

Question 2. (Cost and Shutdown) [7 marks] The graph below shows the marginal cost (MC), average total cost (ATC) and the average variable cost (AVC) curves for a typical firm in a perfectly competitive market. 50 Costs, Revenue, Price ($/unit) 45 MC ATC AVC 15 10 100 200 300 400 500 600 700 800 900 1000 Quantity a. For this firm, if P=$40, total revenue is total cost is $ and profit is $ b. For this firm. if P=$20. total revenue is total cost is $ and profit is $