This question concems three different cases of perfectly competitives, labeled (a) to (e) below. Assume that the marginal cost curve slopes upward in each case. Based on the information given, choose one recommendation from (1) to (7) which is appropriate for each case. You may use the same recommendation for more than one case. In addition, draw a graph corresponding to each case. (1) The firm is now in the correct position. (2) The firm should increase price (3) The firm should decrease price (4) The firm should decrease output. (5) The firm should increase output (6) The firm should shut down operations. (7) The firm is in the correct position for the short run only. In the long run it should exit the industry. Cases (a) TR=$4,000, TVC-$3,000, AFC $2.00, MC-$4.00, AVC $3.00 (b) P-54.50, TFC-59,000, TVC-$12,000, ATC-$5.25, AVC at a mi (c) TR-$10,000, TFC-$2,000 ATC-$4.00 AVC-$3.00, MC-$2.00

Fig: 1