In 2015, the average variable cost of producing wheat in Canada was close to $5 per bushel. Suppose that technological progress reduces the average variable cost to $2 per bushel. Use a figure to show how this change affects the supply curve of a typical competitive firm and the supply curve of all the firms in the market. 1.) Using the line drawing tool, graph the supply curve for a typical competitive firm when the average variable cost of producing wheat is $5 per bushel. Label this 's'.' 2.) Using the line drawing tool, graph the supply curve for a typical competitive firm when the average variable cost of producing wheat is $2 per bushel. Label this 's².:. Be sure to start both of your supply curves at the vertical axis. Carefully follow the instructions above, and only draw the required objects.

In 2015, the average variable cost of producing wheat in Canada was close to $5 per bushel. Suppose that technological progress reduces the average variable cost to $2 per bushel. Use a figure to show how this change affects the supply curve of a typical competitive firm and the supply curve of all the firms in the market. 1.) Using the line drawing tool, graph the supply curve for a typical competitive firm when the average variable cost of producing wheat is $5 per bushel. Label this 's'.' 2.) Using the line drawing tool, graph the supply curve for a typical competitive firm when the average variable cost of producing wheat is $2 per bushel. Label this 's².:. Be sure to start both of your supply curves at the vertical axis. Carefully follow the instructions above, and only draw the required objects.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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