(Solved): 6. Deriving the short-run supply curve The following graph plots the marginal cost (MC) curve, ave ...

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. For every price level given in the foliowing table, use the graph to determine the profit-maximizing quantity of lamps for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equais average variabie cost, the firm is indifferent between producing zero lamps and the profit-maximizing quantity of lamps.) Lastly, determine whether the firm will eam a profit, incur a loss, or break even at each price. On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctiy, you must piot the points in order from left to right, starting with the point ciosest to the origin. You are given more points to plot than you need.) (?) Suppose there are 5 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 polnts along the portion of the industry's short-run suppiy curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctiy, you must piot these points in order from ieft to right, starting with the point ciosest to the onigin. You are given more points to piot than you need.) Next, place the biack 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. At the current short-run market price, firms will in the short run. In the long run,