Answer to Question #281796 in Microeconomics for Aul

Question

An industry currently has 100 firms, each of which

has fixed costs of $16 and average variable costs as

follows:

Quantity Average Variable Cost

1 $1

2 2

3 3

4 4

5 5

6 6

d. Graph the long-run supply curve for this market,

with specific numbers on the axes as relevant.

Answer 1

Solution:

The long-run supply curve for this market is as below: