& Deriving the short-run supply curve Consider the competitive market for halogen lamps. The following graph cost (AVC) curves for a typical fim in the industry AVC DC-O • 1 10 ***** QUANTITY (Thousands of ps) For each price in the following table, use the graph to determine the number of lamps this firm would produce in order to maximize its proft. Aume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero lamps and the profit-maximing 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 (Lamps) (Dollars per lamp) Produce or Shut Down? Profit or Loss? On the following graph, use the orange points (square symbol) to plet points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) 22RRS 10 20 32 40 50 60 COSTS() BRRRRRR 10 4

& Deriving the short-run supply curve Consider the competitive market for halogen lamps. The following graph cost (AVC) curves for a typical fim in the industry AVC DC-O • 1 10 ***** QUANTITY (Thousands of ps) For each price in the following table, use the graph to determine the number of lamps this firm would produce in order to maximize its proft. Aume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero lamps and the profit-maximing 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 (Lamps) (Dollars per lamp) Produce or Shut Down? Profit or Loss? On the following graph, use the orange points (square symbol) to plet points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) 22RRS 10 20 32 40 50 60 COSTS() BRRRRRR 10 4

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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