MC SRATC SRAVC Price $ A BC D E FGHI Quantity FIGURE 9-1 1) Refer to Figure 9-1. If the price a perfectly competitive firm is facing in the market is P2, then the 1) profit-maximizing firm in the short run should produce output A) B. B) C. C) D. D) E. E) F. 2) Suppose a perfectly competitive firm is producing where its average revenue is less than its lowest 2) average variable cost. The firm should A) shut down. B) increase the market price. C) reduce its output. D) expand its output. E) not change its output