Suppose there are 8 firms in this industry, each of which has the cost curves previously shown. On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. PRICE (Dollars per shirt) 100 90 80 Demand 70 60 50 40 30 20 10 0 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Thousands of shirts) At the current short-run market price, firms will Industry's Short-Run Supply Equilibrium in the short run. In the long run,
Suppose there are 8 firms in this industry, each of which has the cost curves previously shown. On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. PRICE (Dollars per shirt) 100 90 80 Demand 70 60 50 40 30 20 10 0 0 80 160 240 320 400 480 560 640 720 800 QUANTITY (Thousands of shirts) At the current short-run market price, firms will Industry's Short-Run Supply Equilibrium in the short run. In the long run,
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 7.15P
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