Consider the perfectly competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the...

Then, plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output.

Extracted text: Consider the perfectly competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. (? 100 90 80 70 60 ATC 50 40 30 20 AVC 10 МС + + + 10 15 20 25 30 35 40 45 50 QUANTITY OF OUTPUT (Thousands of shirts) PRICE AND COST PER UNIT (Dollars)


Extracted text: For each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the loss-minimizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Output (Dollars per shirt) (Shirts) Produce or Shut Down? Profit or Loss? 10 32 40 50 60