Question 1: The following diagram shows the various short run cost curves for a perfectly comparative firm.

Market Price ($)

Firm's Output

Is Price > ATC?

Is Price > AVC?

Are Profits Positive?

$3

4

5

6

7

8

9

10

1. Based on the diagram, and the assumption that the firm is maximizing its profit, fill in the table. The last three columns require only a "yes" or "no".
2. What is this firm's shut-down price? Explain.
3. What is this firm's supply curve? Explain.