On the graphs below,demonstrate the circumstances that would prevail in a perfectly competitive market where the representative firm is experiencing economic losses.Draw the relevant cost curves (marginal,average total,and average variable costs;use U-shaped curves),the marginal revenue curve,and the market supply and demand curves.Shade in the area of total revenue and the area of economic loss.As you've drawn it,will the firm shut down in the short-run or choose to continue production? Explain your answer. 
Definitions:
Court
A governmental institution where legal disputes are resolved by judges or a jury, and laws are interpreted and applied.
Mirror-Image Rule
A principle which holds that the terms of an acceptance must mirror the terms of the offer. If the terms of the acceptance do not mirror the terms of the offer, no contract is formed and the attempted acceptance is a counteroffer.
Acceptance
In contract law, it is the expression of assent to the terms of an offer in such manner as requested or authorized by the offeror.
Terms
Stipulations or conditions specified in a contract or agreement.
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