Consider the competitive market for sports jackets. The following graph shows the marginal cost {MC}, average total cost [ATE], and average variable cost (AVE) curves for a typical rm in the industry. 100 RT C COSTS (Dollars) AUG 10 C Ci 5 10 15 20 25 30 35 40 4-5 5:! QUANTITY (Thousands of jackets] For each price in the foiiowing tabie, use the graph to determine the number of jackets this firm wouid produce in order to maximize its profit. Assume 10 MC 5 10 15 25 30 35 40 45 50 QUANTITY (Thousands of jackets) For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity ( Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 10 20 0 32 40 20,000 50 Either 0 or 20,000 60 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: You are given more points to plot than you need.) 10010 MCO 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of jackets) For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 10 4 20 Either shut down or produce 32 40 Produce 50 Shut down 60 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: You are given more points to plot than you need.) 100 -0 9010 MCO 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of jackets) For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 10 20 Break even 32 40 Loss 50 Profit 60 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: You are given more points to plot than you need.) 100 Firm's Short-Run SupOn 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: You are given more points to plot than you need.) (? ) 100 -0 90 Firm's Short-Run Supply 80 TO 8 S PRICE (Dollars per jacket) & 30 20 10 0 5 10 15 20 0 25 30 35 40 45 50 QUANTITY (Thousands of jackets) 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: You are given more points to plot than you need.) 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.Suppose there are 5 firms in this industry, each of which has the cost curves previously snown. 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: You are given more points to plot than you need.) 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 90 Industry's Short-Run Supply 80 Demand 70 Equilibrium 50 PRICE (Dollars per jacket) 40 30 20 10 25 50 75 100 125 150 175 200 225 250 QUANTITY (Thousands of jack shut down produce At the current short-run market price, firms will in the short run. In the long run,Suppose there are 5 firms in this industry, each of which has the cost curves previously snown. 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: You are given more points to plot than you need.) 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 Industry's Short-Run Supply 80 Demand 70 60 Equilibrium 50 PRICE (Dollars per jacket) 40 20 10 0 firms will neither enter nor exit 0 25 50 5 100 125 150 175 200 225 250 QUANTITY (Thousands of jackets) some firms will enter some firms will exit At the current short-run market price, firms will in the short run. In the long run