(5) On your graph, indicate the supply curve of your firm in the short run. Econ 201.NameAssume that this is the cost function for a perfectly competitive firm: Cost (q) = 5 q' + 20For this cost function, Marginal Cost = MC = 10 q .Fill in the table with your values from your cost function.Total CostAVCAFCATCMC20--133) For any cost function, you can find min Asetting ATC =Land solving for q.Create a graph showing the minimum offunction,Add AVC and MC to your graph.) Here MC is always increasing. As q increanappens to ATC when it is less than MC and whappens to ATC with is more than MC?At what level of production is AVC at its minimum? (the table you made is enough information for you to finvalue.) For any price, will your firm always be able to cover its variable cost?

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(5) On your graph, indicate the supply curve of your firm in the short run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 Profit or Loss 40 35 30 АТС 25 20 15 10 AVC MC 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Shirts) PRICE AND COST (Dollars per shirt)
Figure 9-16 $/4 MC 6.70 6.00 ATC 4.90 AVC 4.00 = MR 2.80 2.60 12 14 If the price-taker fırm in Figure 9-16 9-16.png is currently producing 6 units, then to maximize profit in the short run, it should keep producing 6 units increase production to 12 units increase production to 14 units increase production to 8 units O shut down
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