Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel.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 can 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. If there were 10 firms in this market, the short-run equilibrium price of steel would be per ton. At that price, firms in this industry would . Therefore, in the long run, firms would the steel market. Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per ton. From the graph, you can see that this means there will 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.True False * MindTap - Cenga xb My Questions |b: x C Consider The Cor x2 10 Steps to Buildi xy! perfect competiti xx +Black Box Stocks xAT&TA ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090816&E Apps M GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGEMINDTAPQ Search this courseLove vA My HomeHomework (Ch 14)purpie poinLS (UldiTIonu SYIDOI) LO pioL Lrie sriorL-run inuustry suppiy cur ve wriern triere dre 20 ims. Finalny, use trie green points (tridngie syrmboIJ LOCoursesplot the short-run industry supply curve when there are 30 firms.O Catalog and Study ToolsA-ZEE Rental OptionsP College Success Tips8072Career Success TipsSupply (10 firms)64? Help56O Give FeedbackDemand48Supply (20 firms)4032Supply (30 firms)bongo2416120240 360 480 600 720 840 9601080 1200QUANTITY (Thousands of tons)11:52 AMO Type here to searchL100%44°F12/8/2021PRICE (Dollars per ton)x ... MindTap - Cenga xb My Questions |b: x C Consider The Cor x2 10 Steps to Buildi xy! perfect competiti xBlack Box Stocks xx +AT&TA ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090816&E Apps M GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGEMINDTAPQ Search this courseLove vA My HomeHomework (Ch 14)Tu murg -CoursesO Catalog and Study ToolsA-ZEE Rental OptionsP College Success Tips80Career Success Tips72? Help6456O Give FeedbackATC4032bongo24AVC16MC O8481216 20 24 28 323640QUANTITY (Thousands of tons)11:51 AMP Type here to searchL100%44°F12/8/2021COSTS (Dollars per ton)x ...

The supply curve of one firm equals the marginal cost (MC) curve above the Average variable cost…

Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. 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 can 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. If there were 10 firms in this market, the short-run equilibrium price of steel would be per ton. At that price, firms in this industry would . Therefore, in the long run, firms would the steel market. Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per ton. From the graph, you can see that this means there will 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. True False

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.5CE: Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States...

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Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.

The following diagram shows the market demand for steel.

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 can 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms.

If there were 10 firms in this market, the short-run equilibrium price of steel would be

per ton. At that price, firms in this industry would . Therefore, in the long run, firms would the steel market.

Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be

per ton. From the graph, you can see that this means there will 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.

True

False

* MindTap - Cenga x
b My Questions |b: x C Consider The Cor x
2 10 Steps to Buildi x
y! perfect competiti x
x +
Black Box Stocks x
AT&T
A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090816&
E Apps M Gmail
YouTube A Maps A clickserve.dartsearc.
E Reading list
«
* CENGAGEMINDTAP
Q Search this course
Love v
A My Home
Homework (Ch 14)
purpie poinLS (UldiTIonu SYIDOI) LO pioL Lrie sriorL-run inuustry suppiy cur ve wriern triere dre 20 ims. Finalny, use trie green points (tridngie syrmboIJ LO
Courses
plot the short-run industry supply curve when there are 30 firms.
O Catalog and Study Tools
A-Z
EE Rental Options
P College Success Tips
80
72
Career Success Tips
Supply (10 firms)
64
? Help
56
O Give Feedback
Demand
48
Supply (20 firms)
40
32
Supply (30 firms)
bongo
24
16
120
240 360 480 600 720 840 960
1080 1200
QUANTITY (Thousands of tons)
11:52 AM
O Type here to search
L
100%
44°F
12/8/2021
PRICE (Dollars per ton)
x ...

MindTap - Cenga x
b My Questions |b: x C Consider The Cor x
2 10 Steps to Buildi x
y! perfect competiti x
Black Box Stocks x
x +
AT&T
A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090816&
E Apps M Gmail
YouTube A Maps A clickserve.dartsearc.
E Reading list
«
* CENGAGEMINDTAP
Q Search this course
Love v
A My Home
Homework (Ch 14)
Tu murg -
Courses
O Catalog and Study Tools
A-Z
EE Rental Options
P College Success Tips
80
Career Success Tips
72
? Help
64
56
O Give Feedback
ATC
40
32
bongo
24
AVC
16
MC O
8
4
8
12
16 20 24 28 32
36
40
QUANTITY (Thousands of tons)
11:51 AM
P Type here to search
L
100%
44°F
12/8/2021
COSTS (Dollars per ton)
x ...

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