Case 1 where Price < AVC Case 2 where Price > ATC Case 3 wh…
Case 1 where Price < AVC Case 2 where Price > ATC Case 3 where ATC > P > AVC MC (Marginal Cost) MR (Marginal Revenue) ATC (Average Total Cost) AVC (Average Variable Cost) d (demand curve) P (price) Based on the above figure for a perfectly competitive firm in the short run, In which case will a perfectly competitive firm shut down in the short run? _____________