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QUESTION #2 (28 pts) Curve E Curve D What does point A signify? Dollars What does Line F represent? Line F What does Curve E represent? B Area H What does Pt. B represent? Curve G C What does curve D represent? What does Area H represent? Quantity Assume that market for soybeans is perfectly competitive. In each of the following scenarios, should a typical firm continue to produce or should it shut-down in the short-run? (1 pt for each) Explain your answer and the economic rule associated with the decision. (2 pts for each) Draw a detailed diagram (this means including values for key points) that illustrates the firm's situation in each case. On the diagram, illustrate on the graph what level of output the firm would produce (5 pts for each) (16 pts total) Minimum ATC = $10.50 Market Price P = $9.90 Minimum AVC =$8.75 MR = $2.00 Minimum AVC = $2.00 Minimum ATC = $4.00