---### Deriving the Short-Run Supply CurveConsider the price-taker market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the market.![Graph of Cost Curves]- **X-axis**: Quantity (Thousands of jackets) ranging from 0 to 100.- **Y-axis**: Costs (in dollars), ranging from 0 to 100.Three curves are plotted on this graph:1. **Marginal Cost (MC)**: - This curve is represented in orange. - The MC curve is U-shaped and intersects both the AVC and ATC curves. 2. **Average Total Cost (ATC)**: - This curve is represented in green. - The ATC curve is U-shaped but lies above the AVC curve. 3. **Average Variable Cost (AVC)**: - This curve is represented in purple. - Similar to the ATC curve, the AVC curve is U-shaped but lies below the ATC curve.The graph includes specific data points, annotated with black squares. One notable point is labeled as "30, 15", indicating that at the quantity level of 30 thousand jackets, the cost is $15.This detailed visual representation helps us understand the behavior of cost curves and how they influence a firm's production decisions in the short run. --- ### Homework (Ch 09)For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether the firm will make a profit, suffer a loss, or break even at each price.| Price (Dollars per jacket) | Quantity (Jackets) | Produce or Shut Down? | Profit or Loss? ||---------------------------|--------------------|-----------------------|-----------------|| 15 | 0 | | || 20 | 0 | | || 25 | 0 | | || 55 | 0 | | || 70 | 0 | | || 85 | 0 | | |### Instructions:On the following graph, use the orange points (square symbol) to plot points along the portion of the firm’s short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.)### Graph Description:The graph below presumably shows two axes where:- The horizontal axis (X-axis) represents the quantity of jackets.- The vertical axis (Y-axis) represents the price in dollars per jacket.The orange points (square symbols) will be used to plot the values, signifying the firm's short-run supply curve. The task requires determining by using these points on the graph and then filling out the table based on your analysis.Please refer to the actual graph on your educational tool for precise plotting and further details.

in short run and long run the , the firm should continue the business of not it depends on the…

Consider the price-taker market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the market. 100 90 80 70 60 ATC (Dollar) COSTS 8 8 30 20 10+ 0 O 30, 15 AVC 30 50 60 70 QUANTITY (Thousands of jackets) O MC- 90 100

Consider the price-taker market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the market. 100 90 80 70 60 ATC (Dollar) COSTS 8 8 30 20 10+ 0 O 30, 15 AVC 30 50 60 70 QUANTITY (Thousands of jackets) O MC- 90 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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