Economics 2252 Chapter 14 Question 06

***Please complete the table and graphs as indicated and complete the last sentence on the page. This submission contains all of the information/graphs that are in the homework portal.***

6. Deriving the short-run supply curve

The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for sun lamps.

\fProduce or Shut Down? Either shut down or produce Produce Shut down \f100 90 Firm's Short-Run Supply 80 70 60 50 PRICE (Dollars per lamp) 40 30 20 10 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of lamps)100 Demand -0 90 Industry's Short-Run Supply 80 70 Equilibrium 60 50 PRICE (Dollars per lamp) 40 30 20 10 0 0 45 90 135 180 225 270 315 360 405 450 QUANTITY (Thousands of lamps)firms will neither enter nor exit some firms will enter some firms will exit