Im so confused! help please! On the following graph, use the orange points (squa
ID: 2507272 • Letter: I
Question
Im so confused! help please!
On the following graph, use the orange points (square symbol) to plot the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. Line segments will automatically connect the points. Remember to plot from left to right. (Note: You are given more points to plot than you need!) Consider the perfectly competitive market for ceiling halogen lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. For each price In the following table, use the graph to determine the number of lamps 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 Indifferent between producing zero units and the profit-maximizing quantity. Also, Indicate for each price whether the firm will produce, shut down, or be indifferent between the two in the short run, and whether it will make a profit, suffer a loss, or break even.Explanation / Answer
10 shut down (Reason below AVC) Loss
15 shut down (Reason below AVC) Loss
25 Produce Loss
35 Produce Break even
50 Produce Profit
70 Produce Profit
90 Produce Profit
Quanity to be produced = 12,000