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do it Consider the following graph, which describe a market and rm in a perfectly competitive market. to answerthe questions that follow: P arm P

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Consider the following graph, which describe a market and rm in a perfectly competitive market. to answerthe questions that follow: P "arm P Firm ATC """""""""" MR AVC 100 '1 Refer to the graphs above. Should this rm shut down in the short run? 0 No. It is making zero economic prot No. Its loses more money if it shuts down Yes. Its xed costs are less than its prot loss if it operates No. It is making positive economic prot 0000 Yes. Its xed costs are greater than its prot loss if it operates

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