Note: typed answer and 100℅ accuracy with the answer the competive markest for seapback hats. On the fallowing graph, wse the arage points (square symbol) to plec pointsalang the partion of the firm's short-rus supply curve that correspondls whth the point closest to the arigh. You are givenmore paints to glot thaw you feod.) Supposie there are 9 firms in this industry, each of which has the cost curvespreviausiy shom. graph to indicate the shert-run equavium price and eqantity ho chs markes. Note: Dailhed drop lineswill automatically extend to both axes.6. Deriving the short-run supply curveThe following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating inthe competitive market for snapback hats.9070COSTS (D)8 8 8 8302010aOMC4 10 206095ATCPrice(Dollars per snapback)15203545AVCDO70 00QUANTITY (Thousands of snapback)For every price lave given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, selectwhether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equalsaverage variable cost, the firm is indifferent bt between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determinewhether the firm will earn a profit, incur a loss, or break even at each price120Quantity(Snapbacks)Produce or Shut Down?Profit or Loss? 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 correspondsto 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, startingwith the point closest to the origin. You are given more points to plot than you need.)10090800PRICE Dolars per snapback88104100Suppose there are 9 firms in this industry, each of which has the cost curves previously shown.=On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve thatcorresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left toright, 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 thegraph to indicate the short-run equilibrium price and quantity in this market.Note: Dashed drop lines will automatically extend to both axes.aPRICE (Dolars per pack2706050204 10180QUANTITY (Thousands of spac4DemandFim's Short-Run Supply90 183 278 360 453 543 423 728 813 900QUANTITY (Thousands of snapbackAt the current short-run market price, firms willIndustry's Short-Run SupplyEquilibriumin the short run. In the long run,

Competitive market, also called perfect competition, refers to the structure of the market that…

the competive markest for seapback hats. On the fallowing graph, wse the arage points (square symbol) to plec points alang the partion of the firm's short-rus supply curve that correspondls whth the point closest to the arigh. You are given more paints to glot thaw you feod.) Supposie there are 9 firms in this industry, each of which has the cost curves previausiy shom. graph to indicate the shert-run equavium price and eqantity ho chs markes. Note: Dailhed drop lines will automatically extend to both axes. 6. Deriving the short-run supply curve 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 snapback hats. (m) 100 288 10 . MCO 4 10 ATC AVC QUANTITY (Thousands of snapback Price (Dollars per snapback) 15 20 35 45 60 95 For every price level given in the following table, use the graph to determine the profe-maximizing quantity of snapbacks 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 snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price 100 Quantity (Snapbacks) Produce or Shut Down? Profit or Loss?

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC