Answered: he two side by side graphs are for two…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...

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The two side by side graphs are for two firms that between them supply all the original grown advocados for a local area. With vigorous competition between the firms, the price per pound has settled at a point where both firms are just breaking even. For each firm, the marginal cost (mc) average variable cost (avc) and average total (atc) curves are shown In the blank graph below, use the straight line tool to draw a straight line representing the short run market supply curve for quantities above zero. (that is Dont worry about operating points for which the quantity is zero)

Price ($ per pound)
8
7.5
7
6.5
B
5.5
15
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Quantity (thousands of
pounds)

e marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves are sh
ice ($ per pound)
8
7.5
7
6.5
6
5.5
5
4.5
A
3.5
3
2.5
2
1.5
1
0.5
0
MC
Firm A
6
ATC
AVC
Quantity (thousands of
pounds)
Price ($ per pound)
8
7.5
6.5
5.5
1.5
4.5
1
0.5
3.5
3
0
2.5
2
5
7
6
4
G
MC
Firm B
00
2
2
straight-line tool to draw a straight line representing the short-run market supply ca
inte for which the quantity is zero.)

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