Consider the competitive market for ruthenlum. Assume that no matter how many firms operate in the industry, every firm is identical and faces thesame marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph.6072COSTS (Dollars per pound)XSS8236450402416R0O4MC-D8ATCAVC12 16 20 24 28 32 36 40QUANTITY (Thousands of pounds)The 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: You candisregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use thepurple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) toplot the short-run industry supply curve when there are 30 firms.PRICE (Dolars per pound)223322562416.0 120Demand240 360 480 600 720 840 960 1080 1200QUANTITY (Thousands of pounds)9Supply (10 firms)↑Supply (20 firms)4Supply (30 firms)If there were 10 firms in this market, the short-run equilibrium price of ruthenium would bewouldTherefore, in the long run, firms wouldper pound. At that price, firms in this industrythe ruthenium market.Because you know that competitive firms earnieconomic profit in the long run, you know the long-run equilibrium price must bener pound From the aranh, you can see that this means there will be firms operating in the nuthenlum industry in long-un0

Market demand means the quantity of goods that all the consumers in a market are willing and able to…

Consider the competitive market for ruthenlum. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 9 80 72 COSTS (Dollars per pound) 25R 64 50 48 40 32 24 16 1 0 0 4 Mc-D 8 ATC AVC 12 16 20 24 28 32 36 QUANTITY (Thousands of pounds) 40 The following graph plots the market demand curve for ruthenium. ?

Consider the competitive market for ruthenlum. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 9 80 72 COSTS (Dollars per pound) 25R 64 50 48 40 32 24 16 1 0 0 4 Mc-D 8 ATC AVC 12 16 20 24 28 32 36 QUANTITY (Thousands of pounds) 40 The following graph plots the market demand curve for ruthenium. ?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 4SQP

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