Problem
1. Draw a marginal revenue curve for a price at which the firm would suffer losses but continue to operate in the short-run given the marginal cost, average total cost, and average variable costs in the diagram. Identify the price as P and the quantity the firm would choose to produce. Identify the average total cost per unit at this quantity as C.
2. Draw a marginal revenue curve for a price at which the firm would suffer such severe losses that it would choose to shut down in the short run given the marginal cost, average total cost, and average variable costs in the diagram.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.