6. Deriving the short-run supply curve The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for sun lamps. ? 72 40 COSTS (Dollars) ATC 22 24 AVC MCO 24 32 40 42 53 72 QUANTITY (Thousands of lamps)For every price level given in the following table, use the graph to determine the profit-maximizing quantity of lamps for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero lamps and the profit-maximizing quantity of lamps.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. Price Quantity (Dollars per lamp) (Lamps) Produce or Shut Down? Profit or Loss? 4 8 12 36 48 60On 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: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) 80 72 64 Firm's Short-Run Supply 48 PRICE (Dollars per lamp) 40 32 24 CO 16 24 32 40 48 56 64 72 80 QUANTITY (Thousands of lamps)Suppose there are 10 firms in this industry, each of which has the cost curves previously shown. On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) Next, place the black point (plus 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. ? 80 Demand 12 Industry's Short-Run Supply 84 63 48 Equilibrium 40 PRICE (Dollars per lamp) 32 24 16 2 20 160 240 320 400 430 560 640 720 BOO QUANTITY (Thousands of lamps) At the current short-run market price, firms will in the short run, In the long run