If there were 10 firms in this market, the short-run equilibrium price of rhenium would be $___ per pound. At that price, firms in this industry would (shut down/ earn a positive profit/ operate at a loss/ earn zero profit). Therefore, in the long run, firms would (enter/ exit/ neither enter nor exit) the rhenium market. Because you know that competitive firms earn (zero/ positive/ negative) economic profit in the long run, you know the long-run equilibrium price must be $____ per pound. From the graph, you can see that this means there will be (10/ 20/ 30) firms operating in the rhenium 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 positive accounting profit.- True- False The following graph plots the market demand curve for rhenium.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 (Dollars per pound)10090807060504030201000Demand125 250 375 500 625 750 875 1000 1125 1250QUANTITY (Thousands of pounds)Supply (10 firms)Supply (20 firms)Supply (30 firms)? Consider the competitive market for rhenium. 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.COSTS (Dollars per pound)10090807060504030201000MC5ATCAVC+10 15 20 25 30 35QUANTITY (Thousands of pounds)404550(?)

Profit maximizing level of output for a competitive firm is at the level of output where price (P)…

Answered: If there were 10 firms in this market,…

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 7PA

See similar textbooks

Related questions

Question

If there were 10 firms in this market, the short-run equilibrium price of rhenium would be $___ per pound. At that price, firms in this industry would (shut down/ earn a positive profit/ operate at a loss/ earn zero profit). Therefore, in the long run, firms would (enter/ exit/ neither enter nor exit) the rhenium market.

Because you know that competitive firms earn (zero/ positive/ negative) economic profit in the long run, you know the long-run equilibrium price must be $____ per pound. From the graph, you can see that this means there will be (10/ 20/ 30) firms operating in the rhenium 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 positive accounting profit.

- True

- False

The following graph plots the market demand curve for rhenium.
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.
PRICE (Dollars per pound)
100
90
80
70
60
50
40
30
20
10
0
0
Demand
125 250 375 500 625 750 875 1000 1125 1250
QUANTITY (Thousands of pounds)
Supply (10 firms)
Supply (20 firms)
Supply (30 firms)
?

Consider the competitive market for rhenium. 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.
COSTS (Dollars per pound)
100
90
80
70
60
50
40
30
20
10
0
0
MC
5
ATC
AVC
+
10 15 20 25 30 35
QUANTITY (Thousands of pounds)
40
45
50
(?)

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions