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. 8072Supply (10 firms)645648DemandSupply (20 firms)4032Supply (30 firms)241681202403604806007208409601080 1200QUANTITY (Thousands of pounds)If there were 10 firms in this market, the short-run equilibrium price of copper would be $per pound. At that price, firms in this industry woulTherefore, in the long run, firms wouldthe copper market.Because you know that competitive firms earneconomic profit in the long run, you know the long-run equilibrium price must be24per pound. From the graph, you can see that this means there will befirms operating in the copper 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.PRICE (Dollars per pound) Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical andfaces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.38, 728072645648ATC403224AVC16MC O8ㅇ412162428323640QUANTITY (Thousands of pounds)The following diagram shows the market demand for copper.COSTS (Dollars per pound)20

A competitive market is one in which many producers compete with one another in order to provide the…

Answered: Use the orange points (square symbol)…

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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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.

80
72
Supply (10 firms)
64
56
48
Demand
Supply (20 firms)
40
32
Supply (30 firms)
24
16
8
120
240
360
480
600
720
840
960
1080 1200
QUANTITY (Thousands of pounds)
If there were 10 firms in this market, the short-run equilibrium price of copper would be $
per pound. At that price, firms in this industry woul
Therefore, in the long run, firms would
the copper market.
Because you know that competitive firms earn
economic profit in the long run, you know the long-run equilibrium price must be
24
per pound. From the graph, you can see that this means there will be
firms operating in the copper 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.
PRICE (Dollars per pound)

Consider the competitive market for copper. 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.
38, 72
80
72
64
56
48
ATC
40
32
24
AVC
16
MC O
8
ㅇ
4
12
16
24
28
32
36
40
QUANTITY (Thousands of pounds)
The following diagram shows the market demand for copper.
COSTS (Dollars per pound)
20

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