The diagram to the right shows the long-run equilibrium for a competitive market for three different levels of demand (Do, D₁, and D₂). Assume that firms earn a normal level of profits at each market equilibrium. Illustrate the long-run industry supply curve. Using the line drawing tool, draw the long-run industry supply curve. Label this curve "LRIS'. Note: Carefully follow the instructions above and only draw the required object.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The diagram to the right shows the long-run equilibrium for a competitive market for three
different levels of demand (Do, D₁, and D₂). Assume that firms earn a normal level of profits at
each market equilibrium. Illustrate the long-run industry supply curve.
Using the line drawing tool, draw the long-run industry supply curve. Label this curve 'LRIS'.
Note: Carefully follow the instructions above and only draw the required object.
C
Price per unit ($)
18.00-
16.00-
14.00-
12.00-
10.00-
8.00-
6.00-
4.00-
2.00-
0.00+
0.0
Po
-So
0.4
P₁
P₂
0.8 1.2 1.6 2.0
Units of output, q (millions)
2.4
2.8
Transcribed Image Text:The diagram to the right shows the long-run equilibrium for a competitive market for three different levels of demand (Do, D₁, and D₂). Assume that firms earn a normal level of profits at each market equilibrium. Illustrate the long-run industry supply curve. Using the line drawing tool, draw the long-run industry supply curve. Label this curve 'LRIS'. Note: Carefully follow the instructions above and only draw the required object. C Price per unit ($) 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- 0.00+ 0.0 Po -So 0.4 P₁ P₂ 0.8 1.2 1.6 2.0 Units of output, q (millions) 2.4 2.8
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