6. Deriving the shortrun supply curve The following graph plots the marginal cost {MC} curve, average total cost (ATE) curve, and average variable cost (AVE) curve for a rm operating in the competitive market forjumpsuits. COSTS (Dollars) [II 10 20 30 40 50 60 70 30 90 100 QUANTITY (Thousands of jumpsuits) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of jumpsuits 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 jumpsuits and the profit-maximizing quantity of jumpsuits.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. Price Quantity ( Dollars per jumpsuit) (Jumpsuits) Produce or Shut Down? Profit or Loss? 15 20 25 55 70 85 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: 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.)100 90 80 Firm's Short-Run Supply 70 60 50 PRICE (Dollars per jumpsuit) 40 30 20 10 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of jumpsuits)Suppose there are 5 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.100 Demand 90 Industry's Short-Run Supply 80 70 Equilibrium 60 50 PRICE (Dollars per jumpsult) 40 30 20 10 50 150 200 250 300 350 400 450 500 QUANTITY (Thousands of jumpsuits) At the current short-run market price, firms will in the short run. In the long run,Price Quantity (Dollars per jumpsuit) (Jumpsuits) Produce or Shut Down? Prot or Loss? 4 15 2D 25 55 7\" Either 0 or 30,000 35 444444 44444 Price Quantity (Dollars per jumpsuit) (Jumpsuits) Produce or Shut Down? Prot or Loss? 15 V v 20 V V Either shut down or produce 25 V V 55 7 Produce v 70 7 Shut down v 85 V V Price Quantity (Dollars per jumpsuit) (Jumpsuits) Produce or Shut Down? Prot or Loss? 15 V V V 20 V V Break even 25 V V 55 V V 7'0 V V 85 V v QUANTITY (Thousands of jumps shut down produce At the current short-run market price, firms will in the short run. In the long run,0 firms will neither enter nor exit a so 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of jumpsuiis} some rms will enter some firms will exit At the current shortrun market price, firms will V in the short run. In the long run