Problem
The accompanying table shows the variable cost that a perfectly competitive firm incurs at various levels of output.
Part 1: Plot this firm's average variable cost curve (label it AVC) using the multi-point line tool. Make sure to plot a point for each non-zero quantity listed in the table.
Part 2: Use a horizontal drop line to identify the shut-down price (label it PS). Make sure that the right endpoint of the drop line is placed on the AVC curve.
Part 3: Plot the firm's short-run individual supply curve (label it SRS) using the multi-point line tool. Plot every point on the supply curve that can be identified from the table. Hint: only plot points for non-zero quantities.
|
Units of Output
|
Variable Cost (VC)
|
|
0
|
$0
|
|
1
|
8
|
|
2
|
11
|
|
3
|
18
|
|
4
|
28
|
|
5
|
40
|
|
6
|
54
|
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.