Suppose there are 10 firms in this market, 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 market 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. 100 90 Market Short-Run Supply 80 Demand 70 60 Equilibrium 50 40 30 20 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of shirts) At the current short-run market price, firms will. in the short run. In the long run, PRICE (Dollan per shirt)

The supply curves for the only two firms in a competitive industry are given by: S₁: P = 2Q1 S2: P = 2 + Q2, where Q1 is the output of firm 1 and Q2 is the output of firm 2. These two supply curves are shown in the graph below. Draw the market supply curve for this industry. Instructions: Use the tool provided to plot 4 price-quantity combinations for prices $0, $2, $4 and $6. Price Market Supply 7 S₁ S2 की 6 5 + 3 2 1 0 1 2 3 4 Quantity сл 5 10 6 7 80 Tools line tool

In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well

The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the short-run industry supply curve when there are 20 firms in the market. (Hint: 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.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 40 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 60 firms. PRICE (Dollars per ton) 80 72 Supply (20 firms) 64 58 Demand 48 Supply (40 firms) 40 32 2 24 16 8 ° 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY OF OUTPUT (Thousands of tons) Supply (60 firms) ? If there were 60 firms in this market, the short-run equilibrium price of steel would be $ Therefore, in the long run, firms would Because you know that perfectly competitive firms earn be $ per ton. At that price, firms in this industry…