100 90 80 70 PRICE (Dollars perton) 8 588 50 20 10 0 0 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of tons) Demand Because you know that competitive firms earn S Supply (20 firms) If there were 20 firms in this market, the short-run equilibrium price of steel would be S Therefore, in the long run, firms would O True Supply (30 firms) False Supply (40 firms) per ton. From the graph, you can see that this means there will be per ton. At that price, firms in this industry would the steel market. economic profit in the long run, you know the long-run equilibrium price must be firms operating in the steel industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting profit.

100 90 80 70 PRICE (Dollars perton) 8 588 50 20 10 0 0 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of tons) Demand Because you know that competitive firms earn S Supply (20 firms) If there were 20 firms in this market, the short-run equilibrium price of steel would be S Therefore, in the long run, firms would O True Supply (30 firms) False Supply (40 firms) per ton. From the graph, you can see that this means there will be per ton. At that price, firms in this industry would the steel market. economic profit in the long run, you know the long-run equilibrium price must be firms operating in the steel industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting profit.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 16QP

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