Blank Options:Blank One: (shut down, operate at a loss, earn a positive profit, or earn zero profit).Blank Two: (enter, exit, or neither enter or exit).Blank Three: (zero, positive, or negative).Blank Four: (10, 20, or 30) If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $would. Therefore, in the long run, firms wouldBecause you know that competitive firms earn$per pound. From the graph, you can see that this means there will beequilibrium.Trueper pound. At that price, firms in this industrythe ruthenium market.economic profit in the long run, you know the long-run equilibrium price must befirms 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 positive accounting profit.False Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the 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 cansame marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph.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 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.COSTS (Dollars per pound)8238922.726450160MC-DATC 0AVCO8 12 16 20 24 28QUANTITY (Thousands of pounds)D3240?PRICE (Dollars per pound)807256484032241680+0Demand120 240 360 480 600 720 840 960 1080 1200QUANTITY (Thousands of pounds)0Supply (10 firms)Supply (20 firms)ASupply (30 firms)

The competitive market would result in the equilibrium when the price would be equal to the marginal…

If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would Therefore, in the long run, firms would Because you know that competitive firms earn 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 firms operating in the ruthenium industry in long-run equilibrium. per pound. At that price, firms in this industry the ruthenium market. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. O True O False

If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would Therefore, in the long run, firms would Because you know that competitive firms earn 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 firms operating in the ruthenium industry in long-run equilibrium. per pound. At that price, firms in this industry the ruthenium market. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. O True O False

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.4P

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