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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 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.

ENGR.ECONOMIC ANALYSIS
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.

 

**Wheat Farmer Production Analysis** Three farmers, Will, Jill, and Phil, are involved in wheat farming within a perfectly competitive market. The performance and cost metrics for these farmers are provided through a series of data tables and graphs. ### Data and Graphs 1. **Short-run Quantity Supplied:** - A table shows the wheat quantity supplied by Will, Jill, and Phil at different price points: | Price | Will | Jill | Phil | |-------|------|------|------| | $2.00 | 4 | 2 | 0 | | $4.00 | 6 | 4 | 2 | | $6.00 | 9 | 5 | 4 | | $8.00 | 12 | 8 | 6 | 2. **Cost Metrics:** - Another table outlines the minimum average total cost (ATC), average variable cost (AVC), and marginal cost (MC) for each farmer: | 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 | 3. **Graph Explanation:** - The graph provided illustrates the industry supply curves for both the short run and the long run. - The x-axis represents the quantity of wheat supplied in thousands of bushels. - The y-axis indicates the price levels. - Two curves are shown: - The **purple line** represents the long-run industry supply. - The **orange line** depicts the short-run industry supply. **Instructions:** Based on this data (assuming these are the sole producers), plot the industry's supply curves separately for both the short run and the long run. This analysis helps in understanding the supply adjustments over varying time periods in response to price changes in the market.
Transcribed Image Text:**Wheat Farmer Production Analysis** Three farmers, Will, Jill, and Phil, are involved in wheat farming within a perfectly competitive market. The performance and cost metrics for these farmers are provided through a series of data tables and graphs. ### Data and Graphs 1. **Short-run Quantity Supplied:** - A table shows the wheat quantity supplied by Will, Jill, and Phil at different price points: | Price | Will | Jill | Phil | |-------|------|------|------| | $2.00 | 4 | 2 | 0 | | $4.00 | 6 | 4 | 2 | | $6.00 | 9 | 5 | 4 | | $8.00 | 12 | 8 | 6 | 2. **Cost Metrics:** - Another table outlines the minimum average total cost (ATC), average variable cost (AVC), and marginal cost (MC) for each farmer: | 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 | 3. **Graph Explanation:** - The graph provided illustrates the industry supply curves for both the short run and the long run. - The x-axis represents the quantity of wheat supplied in thousands of bushels. - The y-axis indicates the price levels. - Two curves are shown: - The **purple line** represents the long-run industry supply. - The **orange line** depicts the short-run industry supply. **Instructions:** Based on this data (assuming these are the sole producers), plot the industry's supply curves separately for both the short run and the long run. This analysis helps in understanding the supply adjustments over varying time periods in response to price changes in the market.
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