P.S. I sent this once before and it got reject because it was "graded". I haven't put anything on the question yet nor pushed the Grade This Now button. Back to AssignmentAttemptsKeep the Highest / 46. Deriving the short-run supply curveConsider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variablecost (AVC) curves for a typical firm in the industry.?10090807060ATC504030AVC20MC O10102030405060708090100QUANTITY (Thousands of jackets)For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assumethat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizingquantity. Also, indicate whether the firm will produce, shut down, orindifferent between the two in the short run. Lastly, determine whether it willmake a profit, suffer a loss, or break even at each price.PriceQuantity(Dollars per jacket)(Jackets)Produce or Shut Down?Profit or Loss?152025557085On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that correspondsto prices where there is positive output. (Note: You are given more points to plot than you need.)10090Firm's Short-Run Supply807060504030201010 20 30405060708090100QUANTITY (Thousands of jackets)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 thatcorresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then, place the black point (plussymbol) 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.100Demand90Industry's Short-Run Supply807060Equilibrium504030201050100150200250300350400450500QUANTITY (Thousands of jackets)At the current short-run market price, firms willin the short run. In the long run,Grade It NowSave & ContinueContinue without savingPRICE (Dollars per jacket)PRICE (Dollars per jacket)COSTS (Dollars)

Perfect Competition refers to the form of market in which there is a large number of buyers and…

100 90 70 ATC 30 AVC 20 MCO 10 10 20 40 s0 100 QUANTITY (Thousands of jackets) For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per jacket) (Jackets) Profit or Loss? Produce or Shut Down? COSTS (Dolars)