Accessible description: The figure indicates on the y-axis p…

Accessible description: The figure indicates on the y-axis price and cost in dollars per unit and on the x-axis the quantity in units. Depicted in the figure is a marginal cost (MC), short-run average cost (SRAC), and long-run average cost (LRAC). The Marginal Cost Curve increases through point (Q2, P1). The short-run average cost curve and long-run average cost curve are both u-shaped. SRAC curve decreases through points (Q1) and (Q2, P1) and then increases. The LRAC curve decreases through point (Q1)and (Q3) and then increases through point (Q4, P1).    f1q25g1.jpg In the above figure, the firm’s initial average total cost curve is SRAC. If the price is P1, in the long run the firm will