Homework (Ch 14) 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 X the competitive market for sun lamps. 100 90 80 70 60 ATC 50 COSTS (Dollars) 40 30 20 AVC 10 MC 5 10 15 20 25 30 35 40 45 50 C+ QUANTITY (Thousands of lamps) 20 0m G 090980Q Search this course X 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? 10 20 32 40 50 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: 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. ) 100Homework (Ch 14) 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 X with the point closest to the origin. You are given more points to plot than you need. ) A-Z 100 90 80 Firm's Short-Run Supply 70 60 50 PRICE (Dollars per lamp) 40 30 20 10 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of lamps) C- ich has the cost curves previously shown.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 A-Z 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 90 Industry's Short-Run Supply 80 Demand 70 Equilibrium 60 50 PRICE (Dollars per lamp) 40 30 C- 20 zoom100 90 80 Demand Industry's Short-Run Supply 70 60 Equilibrium 50 PRICE (Dollars per lamp) 40 30 20 10 25 50 75 100 125 150 175 200 225 250 QUANTITY (Thousands of lamps) At the current short-run market price, firms will in the short run. In the long run