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usands of shirts) At the current short-run market price, firms will in the short run. In the long run,

usands of shirts) At the current short-run market price, firms will in the short run. In the long run,

MACROECONOMICS
MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter1: What Is Economics
Section1.A: Using Graphs: A Review
Problem 3TY
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For second graph; suppose there are 10 firms in this industry, each of which has the cost curves previously shown.
Price Quantity (Dollars per shirt) (Shirts) Produce or Shut Down? Profit or Loss? 10 Shut down Loss 20 Either 0 or 30,000 Either shut down or produce Loss 32 35,000 Produce Loss 40 37,500 Produce Loss 50 40,000 Produce Break even 60 42,500 Produce Profit On the following graph, use the orange points (square symbol) to plot 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.) 100 90 80 Firm's Short-Run Supply 70 60 50 40 30 20 10 20 40 PRICE (Dollars per shirt)
Transcribed Image Text:Price Quantity (Dollars per shirt) (Shirts) Produce or Shut Down? Profit or Loss? 10 Shut down Loss 20 Either 0 or 30,000 Either shut down or produce Loss 32 35,000 Produce Loss 40 37,500 Produce Loss 50 40,000 Produce Break even 60 42,500 Produce Profit On the following graph, use the orange points (square symbol) to plot 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.) 100 90 80 Firm's Short-Run Supply 70 60 50 40 30 20 10 20 40 PRICE (Dollars per shirt)
On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve tha corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then, place the black point symbol) 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. 100 90 80 Demand Industry's Short-Run Supply 70 60 Equilibrium 50 40 30 20 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of shirts) At the current short-run market price, firms will in the short run. In the long run, PRICE (Dollars per shirt)
Transcribed Image Text:On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve tha corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then, place the black point symbol) 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. 100 90 80 Demand Industry's Short-Run Supply 70 60 Equilibrium 50 40 30 20 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of shirts) At the current short-run market price, firms will in the short run. In the long run, PRICE (Dollars per shirt)
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