Use the graphing information and data provided in the previous lesson to complete this activity. You will need to include both an industry (total market) and a firm (individual business) graph for each question. On the firm graphs, you will need to illustrate demand (d), marginal revenue (MR), marginal cost (MC), average variable cost (AVC), and average total cost (ATC). When you don't have exact data for a curve, you can still create the curve in relationship to the other curves on the graph. Use the graphs from Lesson 03.04 and Lesson 03.05 to help you construct the shapes and intersections/shifts of your graphs.

1. Suppose five years from now that the ranching industry is in long-run equilibrium at 70 cents per pound.
   1. Graphically illustrate what that would look like for the ranching industry using side-by-side industry and firm graphs. 
2. Then, suppose a new hormone shot is developed at Texas A&M University that allows all ranchers to cut their feed costs by 27 percent if they use this shot.
   1. Graphically illustrate the short-run implications of this development in the ranching industry using a new set of side-by-side industry and firm graphs. Explain your answer. 
   2. Graphically illustrate the long-run implications of this development in the ranching industry using a new set of side-by-side industry and firm graphs. Explain your answer