Consider the following aggregate supply and demand in a perfect competition market (market supply and demand) and a firm cost structure in the short run. Discuss the following questions. Please notice for each situation, you must use WORD technology to show the necessary lines and points, so that to explain why you get that idea, or you will lose points. Situation #1:What are the market's equilibrium price and quantity? Show it in the figure. What is the firm's production decision? Find the firm's ATC, AVC and MC (also need to be shown in the figure), Does the firm make a profit or suffer a loss? Explain and calculate the profit or loss (also need to be shown in the figure).Situation #2:Suppose the price falls to $40. Find the firm's ATC, AVC and MC, Does the firm make a profit or suffer a loss? Explain?Situation #3Determine the shutdown point. Show it in the figure. Should the firm stay in the market at the shutdown point? Why?