The graph above shnws the shprt-run cost structure of a firm in a perfectiy competitive industry. a} Identify the cost curves that are denoted by each of the following labels: i} Curve 1 ' ' ii} Curve 2 iii] Curve 3 b} Explain why Curve 1 does each of the following as output increases: i} Initially decreases ii} Finally increases :1 What measure of cost is represented by the vertical distance between Curve 2 and Curve 3? d] Explain why the vertical distance between Curve 2 and Curve 3 decreases as output increases. e} Using the letters on the graph, identify 2 points on the rm's short-run supply curve