1) Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC curves so that they are consistent with the marginal cost curve.

Suppose the market for apples is perfectly competitive. The first graph depicts the supply and demand curves for the apple market. The second graph represents an individual apple grower. Graph the demand curve that the individual grower faces by placing the endpoints of the firm demand curve in the correct locations. Market for apples Price of apples ($/bushel) Individual apple grower $10 10 9 CO 8 S J 7 Firm demand curve UI a Price of apples ($/bushel) 4 W D 3 N N 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Bushels of apples (thousands) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Bushels of apples (hundreds)The graph depicts the perfectly competitive apple market, where SRS is the short-run supply curve, and L33 is the long-run supply curve. Suppose that a new 100% organic apple juice drink comes on the market. After initial market testing. demand for the beverage soars, to the delight of apple farmers everywhere. Shift the appropriate curve or curves in the graph for the apple market in both the short and long run. 10 Price per apple (59) 0 1 2 3 4 5 6 T 8 9 10 Quantity of apples (hundreds) out the firm's profit-maximizing output decisions, according to the instructions. Place point A at the shutdown point. Place point B at the point where the firm is making a loss but will continue to operate in the short run. Place point C at the break-even point. Place point D at the point where the firm is making an economic profit. Marginal cost Average total cost D Average variable cost Price 0 3 9 12 15 18 21 24 27 30 33 36 39 42 Quantity Which point or points are on the firm's short-run supply curve? V C B D None of these points are on the firm's short-run supply curve.Demand and supply are initially at Do and So, as shown in the graph. Demand increases, and new rms enter the industry; therefore, in the long run, demand and supply move to D 3 and S 1. The long-run industry supply curve is SLR. Using the information in the graph, what conclusion can be drawn? 0 In the long run, industry costs have remained constant. 0 In the long run, industry costs have increased. O Without question, this industry has experienced economies of scale as it expanded. O In the long run, industry costs have decreased. Output Suppose that the market for sweaters is perfectly competitive and in long-run equilibrium. Production data for a single, representative sweater producer are presented in the table. Quantity ( Total Average total Marginal cost (TC) cost (ATC) cost (MC) 0 $11 $30 $30 $19 2 $54 $27 $24 3 $81 $27 $27 4 $116 $29 $35 What is the market price? The market price is $ Suppose that the market price increases by $3 per sweater. Does the market exhibit production efficiency in the short Does the market exhibit allocation efficiency in the short run? run? no O no O yes yesAlexa, Katrina, and Amanda are discussing cost curves over a Carmel Rotti Twist at Spike's Coffee Lounge. Alexa contends that an increasing-cost industry is an industry in which costs rise in the long run as output rises. Katrina believes that an industry can have decreasing costs in the long run as output expands. Amanda is certain that an industry can expand in the long run even as costs remain constant. Select the most correct statement. Alexa is the only one who is correct, as increasing-cost industries have costs that increase in the long run. O Katrina is the only one who is correct, as decreasing-cost industries have costs that decrease in the long run. O Alexa and Amanda are both correct, but Katrina is not. O Katrina and Amanda are both correct, but Alexa is not. O Amanda is the only one who is correct, as constant-cost industries have costs that are constant in the long run. O Alexa, Katrina, and Amanda are all correct. O Alexa and Katrina are both correct, but Amanda is not.The graph shows the relevant oost curves for a perfectly competitive rm. On the graph, MC is marginal oost.A7C is average total oust, AVC is average variable cost, and AF C is average xed cost. What value must the price of the good exceed for the rm to earn positive economic prots? value: 5 What is the shutdown price for this rm? shutdown price: $ Price and wet Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5. Rearrange the AC and AVC curves so that they are consistent with the marginal cost curve. If the average xed cost curve is added to the graph, its M C: shape would be 0 U shaped. 0 always increasing. Cum-400cc O constant. 0 always decreasing. Price($) u: 8 :1 3 $3 oxmw-me-dm Qauntity