5. Deriving the short-run supply curve

Consider the price-taker market for halogen lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the market.

\f100 90 Firm's Short-Run Supply 80 70 60 PRICE (Dollars per lamp) 50 40 30 20 10 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of lamps)100 90 Market Short-Run Supply 80 Demand 70 + Equilibrium 60 50 PRICE (Dollars per lamp) 40 30 20 10 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of lamps) At the current short-run market price, firms will in the short run. In the long run