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The graph shows the short run cost structure of a firm in a perfectly competitive industry (al Identify the cost curves that are denoted by each of the following labels. () Curve 1 (10) Curve 2 (ili) Curve 3 (b) Explain why curve 1 initially decreases and finally increases as output increases (o)What measure of cost is represented by the vertical distance between curve 2 and curve 3? () Explain why the vertical distance between curve 2 and curve 3 decreases as output increases (el Using the letters on the graph, identify two points on the firm's short run supply curve COST Curve I Curve ? R Curve