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The graph shows the costs curves for a blow drier firm. At 100 units, average variable cost (AVC) is $20; marginal cost (MC) is $32;
The graph shows the costs curves for a blow drier firm. At 100 units, average variable cost (AVC) is $20; marginal cost (MC) is $32; average total cost (ATC) is $52. At 200 units, average variable cost (AVC) is $32; marginal cost (MC) is $48; average total cost (ATC) is $48. At 440 units, marginal cost (MC) is $60; average total cost (ATC) is $50. At 800 units, average variable cost (AVC) is $48; average total cost (ATC) is $52. At 1000 units, average total cost (ATC) is $60. If all toaster manufacturers in a competitive industry have the same cost curves depicted above, at a market price of $32, they should produce a quantity of [ Select ] in the short run and firms will [ Select ] in the long run. At a price of $60, they should produce a quantity of [ Select ] in the short run and should [ Select ] in the long run
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