The TP curve is also called the curve MC-MR 15 shortage 16 output is attained at a point where AVC, ATC, and MC_ losses 17 shutdown 18 .are minimum If Price minimum AVC, the firm is producing at surplus 19 _point In a perfect market the best output for a firm is where fall 20 right 1 equilibrium 2 short-run 3 MC-MR-P 4 The supply curve will shift If demand decreases and supply remains constant, equilibrium when tax rises price will left 5 TVC-6 profit-maximizing 7 .decisions are not easily reversed, profits 8 For a firm, the insurance charges are a part of When MC is greater than AC. AC is cost All costs are in short-rung variable 9 fixed 10 ATC 11 long-run 12 When AVC is minimum. the firm has At output levels where AVC is rising When fixed cost rises it shifts TC and MC 13 rising 14 At a price below equilibrium, there is a If supply is constant and demand increases. is above AVC curve upwards of supply price rises