# On the graph below use the orange points square

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On the graph below, use the orange points (square symbol) to plot the portion of the firm's short-runsupply curve thatcorresponds to prices where there is positive output. Line segments will automaticallyconnect the points. Remember to plotfrom left to right.Note: You are given more points to plot than you need!AnswerPRICE [Dollarsper lampl100908070605040o302010ooSupply[Output)o "PRICE [Dollarspel' lamp)10090BO70605040o302010ooo5101520253035404550QUANTITYSUPPLIED(1.000sof lampsper month)IClear AllI ~Exptanation:o5101520253035404550QUANTITYSUPPLIED[1,0005of lampsper month)CloseA
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6. Short-run equilibriumConsider a perfectly competitive market for bushels of wheat. There are 100 firms in the industry, each of which hasthe cost curves shown on the following diagram:DOLLARS [Cents per bushel!100908070605040302010MeATC~AVCo2345678910UNITS OF OUTPUT [l,OOOs of bushelsper monthlThe graph below shows the market demand for wheat. Usethe orange points (square symbol) to plot the short-runindustry supply curve for the wheat industry. Specifically, place one of the orange points at the lowest point of thesupply curve, and the other at the highest point of the supply curve. Line segments will automatically connect thepoints. (Note: You can disregard the portion of the supply curve that corresponds to prices where there is no output,since this is the industry supply curve.) Then use the black point (X symbol) to indicate the short-run equilibriumprice and quantity in this market, Dashed drop lines will automatically extend to both axes,
AnswerPRICE (Cents per bushel]10090807060oSupply Curve.jEquilibrium.jPRICE [Cents per bushel)10090807060o40201030Demand201050- - - - - - - - --)(.oIIIIIIIII4030Demand50----------)(.oIIIIIIIIIo100 200 300 400 500 600 700 800 900 1000QUANTITY [1,OOOsof bushelsper monthI[ClearAIL)lJielp ]o100 200 300 400 500 600 700 800 900 1000QUANTITY (1,ODDsof bushelsper month]Explanation:CloseAIn the short run, the individual supply curve for a firm is the portion of the marginal cost curve that corresponds toprices greater than or equal to the shutdown price of 40<1:.At prices below 40<1:,firms will not produce in the shortrun. At 40<1:,firms will produce a total of 4,000 bushels of wheat per firm x 100 firms:=400,000 bushels of wheat.Therefore, (400, 40) is the lowest point on the short-run industry supply curve. Similarly, at 100<1:(\$1.00) per bushel,firms will produce a total of 10,000 bushels of wheat per firm x 100 firms:=1,000,000 bushels of wheat. Therefore,