(Solved): The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average ...

The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for snapback hats. For every price level given in the following table, use the graph to determine the profit-maximizing quantity of shapbscks for the firm. Further, select whether the fim will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbocks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will eam a proft, incur a loss, or break even at each price. On the following graph, use the orange points (square symboi) to plot points along the portion of the firm's short-run supply aurve that corresponds to prices where there is positlve output. (Note: For the graphing tool to grade correcty, you must plot the points in order from left to right, starting with the point closest to the origin You are given more points to plot than you need.) Suppose there are 8 firms in this industry, each of which has the cont curves previousfy shown. On the following graph, sse the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve thate. cormesponds to prices where there is positive output. (Note: For the graphing tool fo grade cocrectly, you must plot these points in order from left to right, starting whth the point closest to the origin. You are given more points to plot than wou need.) Next, place the busck polint (plus symbol) on the graph to indicate the short-nun equilibrium price and quanbty in this market. Note: Dashed drop lines will automatically extend to both axes. A. the current shert fun tharket orce, firmis will in the short rin. In the long run,