There are three parts to this question. I highly recommend putting this in Notability or some application where you can draw the curves over the graph in this picture. No further information is necessary from me to solve this.

2. Suppose that coffee beans are produced in a perfectly competitive, constant cost, industry. The diagrams below show short run supply and demand for the industry as a whole and the marginal cost for a typical coffee grower (assume all firms are identical in this industry). 4.5 4 3. U - UINOWUIA in 1 . 0.5 30 60 90 30 60 90 Coffee Growing Industry Representative Coffee Growing Firm 100,000's pounds of coffee beans per day pounds of coffee beans per day A) To the firm (grower) diagram, add the demand and MR curves faced by the firm. Assuming that this firm is in long run equilibrium, add the long run industry supply (LRIS) curve to the industry diagram. How many pounds of coffee is each firm producing if maximizing profit (or minimizing losses)? What is the average total cost at this quantity? Fill in the blanks. 9* = ATC at q* = B) Suppose the American Medical Association publishes a study that shows that drinking coffee causes ulcers, and thus consumers buy 15 less 100,000's pounds of coffee at any given price than before. This will SHIFT LEFT the demand curve by that amount at every price. Assuming this firm wants to continue producing in the short run, how many pounds of coffee will the firm produce, and at what price? 9* * = P* * = C) Briefly describe how the coffee industry will move to a new long run equilibrium. In your discussion you must include 1) whether firms will exit or enter the industry, 2) how does the quantity each firm produces (q) change, 3) whether there are shifts in the firm's cost curves and demand curves and movement of industry supply. In the new long run equilibrium, how many pounds of coffee beans will the market produce (Q) and at what price (P) it will be sold