Scenario 7 Competitive Firm - Long Run PRICE Illustrate to the right, a graph showing a company being profitable in a competitive market in the Long Run selling its product at Market Price (MP*) based on its Average Variable Cost (AVC] and Average Total Cost (ATC) and Marginal Cost (MC). Identify each key point on the graph. Q* QUANTITY Scenario 8 PRICE Observe the Short-Run Loss information il- lustrated in the graph to the right. With respect to Price (P*), Average Variable Cost (AVC), Average Total Cost (ATC), Marginal Revenue (MR), and Marginal Cost (MC), what assumption would you make if the firm was selling its product at P*? Notice that MR = P*. What would happen if this were to continue in the long run? Is there a Shut Down point? Q* QUANTITY