Unsure how to solve this set of problems correctly Consider the perfectly competitive market for dress shirts. The following graph shows the marginalcost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in theindustry.PRICE AND COST PER UNIT (Dollars)1009080706050301000MCPrice(Dollarspershirt)15O2025557085ATC010 20 30 40 50 60 70QUANTITY OF OUTPUT (Thousands of shirts).AVCFor each price in the following table, use the graph to determine the number of shirts this firmwould produce in order to maximize its profit. Assume that when the price is exactly equal to theaverage variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferentbetween the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, orbreak even at each price.80 90 100Quantity(Shirts)?Produce or Shut Down?Profit or Loss?On the following graph, use the orange points (square symbol) to plot points along the portion ofthe firm's short-run supply curve that corresponds to prices where there is positive output.(Note: You are given more points to plot than you need.)(?) On the following graph, use the orange points (square symbol) to plot points along the portion ofthe firm's short-run supply curve that corresponds to prices where there is positive output.(Note: You are given more points to plot than you need.)PRICE (Dollars per shirt)8510090PRICE (Dollars per shirt)807060504030201000 1030 4050 60 70QUANTITY OF OUTPUT (Thousands of shirts)88 2288 22Suppose there are 8 firms in this industry, each of which has the cost curves previously shown.100On the following graph, use the orange points (square symbol) to plot points along the portion ofthe industry's short-run supply curve that corresponds to prices where there is positive output.(Note: You are given more points to plot than you need.) Then, place the black point (plussymbol) on the graph to indicate the short-run equilibrium price and quantity in this market.Note: Dashed drop lines will automatically extend to both axes.9080 Demand706050202010080 90 100080 160 240 320 400 480 560QUANTITY OF OUTPUT (Thousands of shirts)-0-640 720 800Firm's Short-Run SupplyAt the current short-run market price, firms will-0-Industry's Short-Run Supply+Equilibrium(?)in the short run. In the long run,

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Shutdown Price:
In perfect competition, the shutdown price is that point where the firms denied to…