HI, I am Having a little trouble with illustrating with diagrams. May you lease help me understand how i would go about drawing them? I have answered the questions, i just cant seem to paint a clear picture in my head of the diagrams.

Kind regards,

Brad

Question

Assume that you have set up a small business in a perfectly competitive industry. Your short-run period is six months, based on the amount of time for which you are locked into a lease agreement for the premises. Consider your financial situation:

Total revenue: $1000 per week

Fixed costs: $800 per week

Variable costs: $700 per week.

Considering these figures, answer the questions below.

Question 3.1. Will you keep operating the business in the short run? Explain your answer, illustrating it with a diagram.

Question 3.2. What will you do in the long run? Explain your answer, illustrating it with a diagram.