On the following graph, use the orange points (square symbol) to plot the portion of the firm's supply curve that corresponds to prices where there ispositive output, including the break-even price. (Note: You are given more points to plot than you need!) Then use the grey points (star symbol) toplot the portion of the firm's supply curve that corresponds to prices where there is zero output. (Hint: This line segment should start at (0, 0) andend at the price where the firm is indifferent between producing and not producing.)Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.10090Supply (Output)8070+60Supply (No Output)5040302010102030405060708090100QUANTITY (Benches per month)higherlowerThe break-even price is, because profit is equal toat this price and positive for any price that isPRICE (Dollars per bench) Suppose your dad owns a voodworking shop where he makes handmade benches. The following graph shows the marginal cost (MC) and averagevariable cost (AVC) for your dad's business.1009080MC7060AVC5040302010102030405060708090100OUTPUT (Benohes per month)For each of the prices in the following table, use the graph to determine the number of benches your dad would produce in order to maximize hisprofit. Also, for each of the prices, indicate whether the firm will produce or shut down (or be indifferent between the two) in the short run.PriceOutput(Dollars per bench) (Benchs per month)Produce or Shut Down?323642556676COST (D olars per bench)

Answered: Image /qna-images/answer/02ba7825-8d4d-415d-8eda-a922290bd8fa.jpg

On the following graph, use the orange points (square symbol) to plot the portion of the firm's supply curve that corresponds to prices where there is positive output, including the break-even price. (Note: You are given more points to plot than you need!) Then use the grey points (star symbol) to plot the portion of the firm's supply curve that corresponds to prices where there is zero output. (Hint: This line segment should start at (0, 0) and end at the price where the firm is indifferent between producing and not producing.) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 100 90 Supply (Output)

On the following graph, use the orange points (square symbol) to plot the portion of the firm's supply curve that corresponds to prices where there is positive output, including the break-even price. (Note: You are given more points to plot than you need!) Then use the grey points (star symbol) to plot the portion of the firm's supply curve that corresponds to prices where there is zero output. (Hint: This line segment should start at (0, 0) and end at the price where the firm is indifferent between producing and not producing.) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 100 90 Supply (Output)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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