Consider the following diagram: 
Would a perfectly competitive firm facing these conditions stay in business in the short run? Demonstrate your answer by comparing the loss if it stayed open to the loss if it closed.
Definitions:
Diamond Cutters
Skilled professionals who cut and shape diamonds to enhance their value and beauty.
Supply
The total amount of a product or service available for purchase at any given price, determined by factors like production capacity and market demand.
Quantity Demanded
The total amount of a good or service that consumers are willing to purchase at a specific price level, holding all other factors constant.
Quantity Supplied
The amount of a good or service that producers are willing and able to offer for sale at a given price during a specified period.
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