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Question: 6 deriving the shortrun supply curve consider the competitive market...

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6. Deriving the short-run supply curve Consider the competitive market for dress shirts. The foallowing graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry TC AVC 0 10 15 22 3 35 40 45 QUANTITY (Thousands of shirts) For each price in the following tabe, use the graph to determine the number of shirts this firm would produce inorder to maximize itsproit. Assume that when the price is exactiy equato the average variabie cos, the firm is indifferent between producing zero shirts and the profit-maximizing quantity. Aiso, indicate whether the firm will produce, shut down, or be indierent between the to in the short run. Lastly, determine whether it w make a proit, suffer a loss, or break even at each price. Quantity (Shirts) Price (Dollars per shirt) 10 20 32 40 50 Produce or Shut Down? Profit or Loss?

Dn the fodoming grapt, use the orane paints (square symbal) to plot points along the portior of ti firms short-Fut supply cwve that comaspunds tu pricas where there ณ Positive output. (Note. Tw are givin mare puits tu purum you need 5 10 15 4 Suppese there are 8Erms in this industry,each ef which has the cest curves previously shen. Dn the Kodoming grapit, use the drange painesisquare symbal) to pot pants ang te portar of thse industrys short-run supply curve thu carreipunda to pricas vesre therwis politke, autput. (Note: You are gwn murw points to plot than you need.)Than, place ย獪とack point (plus Note: Dashed drep lines wil automatically axtnd be both axes Indastrys Short-Run Sapply QUANTITYThds af shirb At the current shart run markat price, firmi will in the short run. In the long un,

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