6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in San Diego. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: 100 MC TC COST {Cents par hushai) 5 AVG u1u12uac30354u455o QUANTITY OF OUTPUT {Thousands oi bushels] The following graph shows the market demand for wheat. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Note: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Then, place the black paint (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.) Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Note: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Then, 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 -O Supply Curve 80 70 60 Equilibrium PRICE (Cents per bushel) 40 30 20 10 0 0 450 900 1350 1800 2250 2700 3150 3600 4050 4500 QUANTITY OF OUTPUT (Thousands of bushels) At the current short-run market price, firms will in the short run. In the long run, the market given the current market price.4. Short-run prot maximization or loss minimization for a perfectly competitive firm Suppose that the market for sports watches is a perfectly competitive market. The following graph shows the daily cost curves of a rm operating in this market. 1m) Protar Loss AT 2:: MC AVG PRICE AND COST {Dollars psrwaich) D 10 20 30 III} 50 BO To 50 90 100 QUANTITY OF OUTPUT {Waldies} In the short run, at a market price of $80 per watchIr this rm will choose to produce ' watches per day. On the previous graph, use the blue rectangle (circle symbols) to shade the area representing the rm '5 prot or loss if the market price is $80 and the rm chooses to produce the quantity you already selected. Note: In the following question, you should enter a positive number in the numeric entry eld. The area of this rectangle indicates that the firm's V would be $ per day