Will, Jill, and Phil are all wheat farmers. The wheat industry s perfectly (purely) competitive. The first chart shows how nuch 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 un and one for the long run. Price 10 9 8 7 6 5 4 3 2 1 Long-run Shoustrynsimplytry supply Price $2.00 $4.00 $6.00 $8.00 Will 4 6 9 | 12 Firm Minimum ATC Minimum AVC Minimum MC Jill Phil 2 0 4 2 5 4 8 6 Will Jill Phil $2.50 $5.00 $7.00 $1.00 $2.00 $2.50 $0.50 $1.00 $2.00

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 5CQ
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Can someone please explain why the long run graph would look like this?

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.
Price
10
9
8
7
4
3
2
1
O
0
Long-run Shoutstrynsimplytry supply
2 4
6 8 10 12 14 16 18 20
22 24 26
Quantity
Price
$2.00
$4.00
$6.00
$8.00
Will
4
6
9
12
Firm
Minimum ATC
Minimum AVC
Minimum MC
Jill
2
4
5
8
Phil
0
2
4
6
Will
Phil
Jill
$2.50 $5.00 $7.00
$1.00 $2.00 $2.50
$0.50 $1.00 $2.00
Transcribed Image Text: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. Price 10 9 8 7 4 3 2 1 O 0 Long-run Shoutstrynsimplytry supply 2 4 6 8 10 12 14 16 18 20 22 24 26 Quantity Price $2.00 $4.00 $6.00 $8.00 Will 4 6 9 12 Firm Minimum ATC Minimum AVC Minimum MC Jill 2 4 5 8 Phil 0 2 4 6 Will Phil Jill $2.50 $5.00 $7.00 $1.00 $2.00 $2.50 $0.50 $1.00 $2.00
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