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cost (AVC) curves for a typical firm in the industry. Tools 100 ATC COSTS (Dollars) % 89RR AVC 10 0 10 50 100 20 30

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cost (AVC) curves for a typical firm in the industry. Tools 100 ATC COSTS (Dollars) % 89RR AVC 10 0 10 50 100 20 30 40 10 00 TO NO QUANTITY (Thousands of shirts) For each price in the following table, use the graph to determine the number of shirts 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 Indiferent between producing zero shirts 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 (Dollars per shirt) Quantity (Shirts) 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: You are given more points to plot than you need.) 100 0 Form's Short Fun Supply PO % wed urpas NO B On the following graph, use the orange points (square symbol) to plot points along the portion of the film'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.) ols 100 -0- Firm's m's Short Run Supply TO PRICE Dollars per shirt & 9 10 0 SO 100 20 040 MO 60 70 50 QUANTITY(Thousands of shirts) Suppose there are some 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. 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 Demand BO NO Industry's Short-Run Supply 70 00 Equilibrium PRICE (Dollars per shirt) SO 40 30 20 10 O D 50 450 500 100 150 200 250 300 350 400 QUANTITY (Thousands of shirts) At the current short-run market price, firms will In the short run. In the long run

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