The graph below shows the cost curves of an individual firm in a perfectly (or p

Question

The graph below shows the cost curves of an individual firm in a perfectly (or purely) competitive industry.

Use the orange line labeled 'Supply' to trace out the firm's Short-Run supply curve.

I have attached three attempts of mine that were wrong. I only need help with the supply curve. Thank you so much!

Here are the points you can move either A or B to, respectively.

The graph below shows the cost curves of an individual firm in a perfectly (or purely) competitive industry. Use the orange line labeled 'Supply' to trace out the firm's Short-Run supply curve Marginal Cost 2 19 18 17 16 15 What is the minimum quantity this firm will produce in the short run? Average Total Cost O 12 units 18 units 6 units 3 units 13 12 Average Variable Cost E 10 9 In the long run, the firm will shut down if the market price stays belovw 6 5 4 O $2 O $9 O $6 O $12 Supply 2 3 6 9 12 15 18 21 24 27 30 33 36 39 Quantity Incorrect. Point C is incorrect. Where is the firm's shut- down point? This will be the lowest point on the marginal cost curve which is also on the firm's supply curve

Explanation / Answer

Hey, I am not sure about what the points A,B,C,D represent on the supply curve.

There is only one mistake i.e. the SR supply curve should start from the minimum point of the AVC curve (when Price = $6) and pass through the minima of ATC curve (when Price = $9). It should not fall below $6 as the firm would not produce below this price level. Remaining answers are correct.

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