The figure to the right shows the long-run equilibrium for the coffee industry for three different levels of demand (D₁, D₂, and D3). Assume that the coffee industry is perfectly competitive and that firms earn a normal level of profit at each market equilibrium. Illustrate the long-run industry supply curve. Using the line drawing tool, graph the long-run industry supply curve. Label this curve 'S'. Carefully follow the instructions above, and only draw the required object. (...) Dollars per unit 18.00 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00 0.00+ 0.0 D₁ S₁ 0.5 P₂ Pz Seª 1.0 1.5 2.0 Output (10,000s per day) 2.5
The figure to the right shows the long-run equilibrium for the coffee industry for three different levels of demand (D₁, D₂, and D3). Assume that the coffee industry is perfectly competitive and that firms earn a normal level of profit at each market equilibrium. Illustrate the long-run industry supply curve. Using the line drawing tool, graph the long-run industry supply curve. Label this curve 'S'. Carefully follow the instructions above, and only draw the required object. (...) Dollars per unit 18.00 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00 0.00+ 0.0 D₁ S₁ 0.5 P₂ Pz Seª 1.0 1.5 2.0 Output (10,000s per day) 2.5
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Aa12
Transcribed Image Text:The figure to the right shows the long-run equilibrium for
the coffee industry for three different levels of demand
(D₁, D₂, and D3). Assume that the coffee industry is
perfectly competitive and that firms earn a normal level of
profit at each market equilibrium. Illustrate the long-run
industry supply curve.
Using the line drawing tool, graph the long-run industry
supply curve. Label this curve 'S'.
Carefully follow the instructions above, and only draw the
required object.
C
Dollars per unit
18.00-
16.00-
14.00-
12.00-
10.00-
8.00-
6.00-
4.00+
2.00-
0.00-
0.0
ठं
P₁
S₁
0.5
Plat
S₂
P3
S3
1.0
1.5
2.0
Output (10,000s per day)
2.5
6
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