PRICE (Dollars per pod100800Demandequilibrium.125 250 ITS 5007:50 875 1000QUANTITY (Thousands of pounds)Because you know that competitive firms earn-0-Supply (10 firms)If there were 10 firms in this market, the short-run equilibrium price of ruthenium would be sindustry would. Therefore, in the long run, firms wouldO TrueO FalseSupply (15 firms)Supply (20 firms)per pound. From the graph, you can see that this means there will beper pound. At that price, firms in thisthe ruthenium market.economic profit in the long run, you know the long-run equilibrium price mustfirms operating in the ruthenium industry in long-runTrue or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negativeaccounting profit. 7. Short-run supply and long-run equilibriumConsider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical andfaces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph.COSTS (Dollars per point)81002080200aMC10ATCAVCO□20 305080 TOQUANTITY (Thousands of pounds)20 100The following graph plots the market demand curve for ruthenium.Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: Youcan disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.)Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the greenpoints (triangle symbol) to plot the short-run industry supply curve when there are 20 firms.

A market that is competitive has a number of traits. It must be depletable, which means that the…

- 2காய Agend weight and is fugiado su angefa ser una buo ang us Agentur in un bugevado say and to see and are se poder fernsey je to azud umuqnba the ruthenium market. per pound. At that price, firms in this i se si te da vas ne bo pod jad [ unu-Subj auQ Mzux mok; “unu Suவு சுபு] பy 2பூud அயமைலை Therefore, in the long run, firms would (wy oz) Addins (91) Addins $24 Supply (10 firms) O Fals True Jag pinos whiwaigi jo pod white - in to see what it means t D accounting profit. Because you know that competitive firms cam QUANTITY (Thousands of pounds) equilibrium. Demand industry would D 0 6 19 H 888 PRICE (Dollars per pod H 88

- 2காய Agend weight and is fugiado su angefa ser una buo ang us Agentur in un bugevado say and to see and are se poder fernsey je to azud umuqnba the ruthenium market. per pound. At that price, firms in this i se si te da vas ne bo pod jad [ unu-Subj auQ Mzux mok; “unu Suவு சுபு] பy 2பூud அயமைலை Therefore, in the long run, firms would (wy oz) Addins (91) Addins $24 Supply (10 firms) O Fals True Jag pinos whiwaigi jo pod white - in to see what it means t D accounting profit. Because you know that competitive firms cam QUANTITY (Thousands of pounds) equilibrium. Demand industry would D 0 6 19 H 888 PRICE (Dollars per pod H 88

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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