Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive. The first chart shows how much each farmer produces at different price levels. The second chart shows each farmer's minimum average total cost (ATC), average variable cost (AVC), and marginal cost (MC).Based on this data (assuming these three are the only producers), plot the industry supply curves: one for the short run and one for the long run. Will, Jill, and Phil are all wheat farmers. The wheat industryis perfectly (purely) competitive. The first chart shows howShort-run quantity suppliedmuch each farmer produces at different price levels. Thesecond chart shows each farmer's minimumPriceWillJillPhilaveragetotal$2.0042cost (ATC), average variable cost (AVC), and marginal$4.00642cost (MC).$6.00954Based on this data (assuming these three are the only$8.00128producers), plot the industry supply curves: one for the shortrun and one for the long run.FirmWillJillPhilMinimum ATC$2.50 $5.00$7.00Minimum AVC$1.00$2.00$2.50Minimum MC$0.50 $1.00$2.00108743Long-runSndustryrsipplytry supply21246101214 161820 2224 26Quantity (thousands of bushels)PriceLO

The short-run supply(ss) curve of the industry is a summation of quantity supplied by every producer…

Answered: Will, Jill, and Phil are all wheat…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive. The first chart shows how much each farmer produces at different price levels. The second chart shows each farmer's minimum average total cost (ATC), average variable cost (AVC), and marginal cost (MC).

Based on this data (assuming these three are the only producers), plot the industry supply curves: one for the short run and one for the long run.

Will, Jill, and Phil are all wheat farmers. The wheat industry
is perfectly (purely) competitive. The first chart shows how
Short-run quantity supplied
much each farmer produces at different price levels. The
second chart shows each farmer's minimum
Price
Will
Jill
Phil
average
total
$2.00
4
2
cost (ATC), average variable cost (AVC), and marginal
$4.00
6
4
2
cost (MC).
$6.00
9
5
4
Based on this data (assuming these three are the only
$8.00
12
8
producers), plot the industry supply curves: one for the short
run and one for the long run.
Firm
Will
Jill
Phil
Minimum ATC
$2.50 $5.00
$7.00
Minimum AVC
$1.00
$2.00
$2.50
Minimum MC
$0.50 $1.00
$2.00
10
8
7
4
3
Long-runSndustryrsipplytry supply
2
1
2
4
6
10
12
14 16
18
20 22
24 26
Quantity (thousands of bushels)
Price
LO

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