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: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) PRICE (Dollars per jumpsuit) 80 72 64 PRICE (Dollars per jumpsuit) 56 48 40 32 24 16 8 0 80 72 64 56 Suppose there are 9 firms in this industry, each of which has the cost curves previously shown. Note: Dashed drop lines will automatically extend to both axes. 48 40 On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) Next, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. 32 24 0 16 8 8 0 0 + 16 24 32 40 48 56 QUANTITY (Thousands of jumpsuits) Demand 64 72 72 80 At the current short-run market price, firms will 144 216 288 360 432 504 576 648 QUANTITY (Thousands of jumpsuits) O Firm's Short-Run Supply 720 -0 (?) Industry's Short-Run Supply Equilibrium in the short run. In the long run, ?
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: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) PRICE (Dollars per jumpsuit) 80 72 64 PRICE (Dollars per jumpsuit) 56 48 40 32 24 16 8 0 80 72 64 56 Suppose there are 9 firms in this industry, each of which has the cost curves previously shown. Note: Dashed drop lines will automatically extend to both axes. 48 40 On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) Next, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. 32 24 0 16 8 8 0 0 + 16 24 32 40 48 56 QUANTITY (Thousands of jumpsuits) Demand 64 72 72 80 At the current short-run market price, firms will 144 216 288 360 432 504 576 648 QUANTITY (Thousands of jumpsuits) O Firm's Short-Run Supply 720 -0 (?) Industry's Short-Run Supply Equilibrium in the short run. In the long run, ?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Please solve the second image.
Transcribed Image Text: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: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting
with the point closest to the origin. You are given more points to plot than you need.)
PRICE (Dollars per jumpsuit)
80
72
64
PRICE (Dollars per jumpsuit)
56
48
40
32
24
16
8
0
80
72
64
56
Suppose there are 9 firms in this industry, each of which has the cost curves previously shown.
Note: Dashed drop lines will automatically extend to both axes.
48
40
On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that
corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to
right, starting with the point closest to the origin. You are given more points to plot than you need.) Next, place the black point (plus symbol) on the
graph to indicate the short-run equilibrium price and quantity in this market.
32
24
0
16
8
8
0
0
+
16 24 32 40 48 56
QUANTITY (Thousands of jumpsuits)
Demand
64
72
72
80
At the current short-run market price, firms will
144 216 288 360 432 504 576 648
QUANTITY (Thousands of jumpsuits)
O
Firm's Short-Run Supply
720
-0
(?)
Industry's Short-Run Supply
Equilibrium
in the short run. In the long run,
?
Transcribed Image Text:The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in
the competitive market for jumpsuits.
COSTS (Dollars)
80
72
64
56
48
40
32
24
16
8
0
0
8
☐
MC
16
0
ATC
Price
(Dollars per jumpsuit)
4
8
12
36
48
60
AVC
24 32 40 48 56
QUANTITY (Thousands of jumpsuits)
☐
64
For every price level given in the following table, use the graph to determine the profit-maximizing quantity of jumpsuits for the firm. Further, select
whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals
average variable cost, the firm is indifferent between producing zero jumpsuits and the profit-maximizing quantity of jumpsuits.) Lastly, determine
whether the firm will earn a profit, incur a loss, or break even at each price.
Quantity
(Jumpsuits)
0
0
36,000
48,000
52,000
56,000
72 80
Produce or Shut Down?
Shut down
Shut down
Produce
Produce
Produce
Produce
Profit or Loss?
Loss
Loss
Loss
Break even
Profit
Profit
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