graph below shows a firm’s short run average variable cost curve
(SRAVC), its average cost curve (AC), and its marginal cost curve
– Label these curves.
– Then on the graph show P1 as the price where
anything below this price the firm should shut down in the short
– Then show P2 where the firm would just
– Show P3 where the firm would be making a
– Then show the output levels Q2 and Q3
associated with P2 and P3.