to 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, starting with the point closest to the origin. You are given more points to plot than you need.) PRICE (Dollars per jumpsuit) 100 90 80 70 60 50 40 30 20 10 0 0 5 10 15 20 25 30 36 40 QUANTITY (Thousands of jumpsuits) 45 50 -0- Firm's Short-Run Supply Suppose there are 5 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 that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, 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 the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. PRICE (Dollars per jumpsuit) 100 90 20 80 70 60 50 40 30 20 10 Demand 0 0 25 50 75 100 125 150 175 200 225 250 QUANTITY (Thousands of jumpsuits) At the current short-run market price, firms will -0- Industry's Short-Run Supply Equilibrium in the short run. In the long run, ་ 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 jumpsuits. 100 8 90 80 2 70 COSTS (Dollars) 5 8 8 30 20 ㅁ 10 0 + MC-D ATC ㅁㅁ AVC D 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of jumpsuits) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of jumpsuits 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 jumpsuits and the profit-maximizing quantity of jumpsuits.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. Price (Dollars per jumpsuit) Quantity (Jumpsuits) Produce or Shut Down? Profit or Loss? 10 20 32 40 50 60 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: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.)

to 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, starting with the point closest to the origin. You are given more points to plot than you need.) PRICE (Dollars per jumpsuit) 100 90 80 70 60 50 40 30 20 10 0 0 5 10 15 20 25 30 36 40 QUANTITY (Thousands of jumpsuits) 45 50 -0- Firm's Short-Run Supply Suppose there are 5 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 that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, 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 the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. PRICE (Dollars per jumpsuit) 100 90 20 80 70 60 50 40 30 20 10 Demand 0 0 25 50 75 100 125 150 175 200 225 250 QUANTITY (Thousands of jumpsuits) At the current short-run market price, firms will -0- Industry's Short-Run Supply Equilibrium in the short run. In the long run, ་ 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 jumpsuits. 100 8 90 80 2 70 COSTS (Dollars) 5 8 8 30 20 ㅁ 10 0 + MC-D ATC ㅁㅁ AVC D 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of jumpsuits) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of jumpsuits 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 jumpsuits and the profit-maximizing quantity of jumpsuits.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. Price (Dollars per jumpsuit) Quantity (Jumpsuits) Produce or Shut Down? Profit or Loss? 10 20 32 40 50 60 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: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 4E

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