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: You are given more points to plot than you need.) Then, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. 100 90 10 70 PRICE (Dollars per lamp) 8 8 8 8 60 50 20 10 D 0 Demand 70 140 210 280 350 420 540 630 700 QUANTITY (Thousands of lamps) 9 industry's Short-Run Supply + Equilibrium

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Chapter1: Making Economics Decisions
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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: You are given more points to plot than you need.) Then, place the black point (plus
symbol) on the graph to indicate the short-run equilibrium price and quantity in this market.
Note: Dashed drop lines will automatically extend to both axes.
8 8 8 8 8
100
PRICE (Dollars per lamp)
8 8 8
50
30
20
10
D
0
Demand
70 140 210 280 350 420 490 560
QUANTITY (Thousands of lamps)
630 700
P
industry's Short-Run Supply
+
Equilibrium
need assistance plotting last graph
Transcribed Image Text: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: You are given more points to plot than you need.) Then, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. 8 8 8 8 8 100 PRICE (Dollars per lamp) 8 8 8 50 30 20 10 D 0 Demand 70 140 210 280 350 420 490 560 QUANTITY (Thousands of lamps) 630 700 P industry's Short-Run Supply + Equilibrium need assistance plotting last graph
For each price in the following table, use the graph to determine the number of lamps 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 lamps 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 it will
make a profit, suffer a loss, or break even at each price.
Price
(Dollars per lamp)
15
20
PRICE (Dollars per lamp
80
RS232
70
26
25
55
70
85
10
588 288 8
COSTS (Dolars)
20
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.)
(?
10
0
10
D
Quantity
(Lamps)
0
0
Either 0 or 45,000
10
60,000
65,000
70,000
MC-D
20
D
20 30 40 50 60 75 NO
QUANTITY (Thousands of lamps)
Y
D
Y
6. Deriving the short-run supply curve
Consider the competitive market for halogen lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable
cost (AVC) curves for a typical firm in the industry.
ATC
♥
AVC
Produce or Shut Down?
Shut down
Shut down
Either shut down or produce
Produce
Produce
Produce
90 100
Y
50 60
70
00
30 40
QUANTITY (Thousands of lamps)
Y
00100
Profit or Loss?
Loss
Loss
Loss
--0-
Firm's Short-Run Supply
Y
Break even Y
Profit
Profit
Y
Transcribed Image Text:For each price in the following table, use the graph to determine the number of lamps 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 lamps 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 it will make a profit, suffer a loss, or break even at each price. Price (Dollars per lamp) 15 20 PRICE (Dollars per lamp 80 RS232 70 26 25 55 70 85 10 588 288 8 COSTS (Dolars) 20 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.) (? 10 0 10 D Quantity (Lamps) 0 0 Either 0 or 45,000 10 60,000 65,000 70,000 MC-D 20 D 20 30 40 50 60 75 NO QUANTITY (Thousands of lamps) Y D Y 6. Deriving the short-run supply curve Consider the competitive market for halogen lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. ATC ♥ AVC Produce or Shut Down? Shut down Shut down Either shut down or produce Produce Produce Produce 90 100 Y 50 60 70 00 30 40 QUANTITY (Thousands of lamps) Y 00100 Profit or Loss? Loss Loss Loss --0- Firm's Short-Run Supply Y Break even Y Profit Profit Y
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