6. Deriving the short-run supply curve

Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry.

Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), a cost (AVC) curves for a typical firm in the industry. 100 90 80 70 60 ATC COSTS (Dollars) 50 40 30 AVC 20 MC 10 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of jackets)100 90 80 Firm's Short-Run Supply 70 60 50 PRICE (Dollars per jacket) 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of jackets) Suppose there are 8 firms in this industry, each of which has the cost curves previously shown.100 90 Industry's Short-Run Supply 80 Demand 70 60 Equilibrium O 50 PRICE (Dollars per jacket) 40 30 20 10 0 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Thousands of jackets)