Consider the same firm from the Monday assignment but now let's call that cost schedule total variable cost. Q 1 2 3 4 5 6 7 8 9 TVC 12 20 24 28 34 42 52 64 78 And let's imagine that there is fixed costs of 18 which is sunk in the short run. a. Show this firm's average total cost, average variable cost and marginal cost on a graph. Indicate the efficient scale (I don't think the book uses the words "efficient scale" but it's the quantity where profit would be zero when P=MC. We will discuss what I mean by "efficient scale but probably not before Thursday. By "indicate" I mean give the quantity and MC. I don't need every point to be exactly to scale, I just care about the general shape of the curves, where things cross and the location and numbers for the efficient scale.) b. Now imagine that this market is perfectly competitive with many firms that are all identical. On another graph, show the supply curve in the long run. There should be one number on this graph. (I can't tell you what it is without giving away the main point of this question but suffice it to say that if you're not sure what number to add, you are missing something important.)