Homework Help is Here – Start Your Trial Now!
Business
Economics
Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 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 30 firms. Finally, use the green points (triangle symbol) to plot the short- run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 60 Supply (30 firms) 50 40 Supply (40 firms) Demand 30 20 10 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) If there were 30 firms in this market, the short-run equilibrium price of copper would be s per pound. At that price, firms in this industry would Therefore, in the long run, firms would v 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 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. True False PRICE (Dollars per pound)

Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 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 30 firms. Finally, use the green points (triangle symbol) to plot the short- run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 60 Supply (30 firms) 50 40 Supply (40 firms) Demand 30 20 10 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) If there were 30 firms in this market, the short-run equilibrium price of copper would be s per pound. At that price, firms in this industry would Therefore, in the long run, firms would v 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 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. True False PRICE (Dollars per pound)

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...
See similar textbooks
icon
Related questions
Question

Please try to answer this by tonight, and please show the table with exact plot points for each!

7. Short-run supply and long-run equilibrium 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. 100 90 80 70 50 40 ATC 30 AVC 10 MC O 0. 0 5 10 15 20 25 30 35 45 50 QUANTITY (Thousands of pounds) The following diagram shows the market demand for copper. 40 20 COSTS (Dollars per pound)
Transcribed Image Text:7. Short-run supply and long-run equilibrium 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. 100 90 80 70 50 40 ATC 30 AVC 10 MC O 0. 0 5 10 15 20 25 30 35 45 50 QUANTITY (Thousands of pounds) The following diagram shows the market demand for copper. 40 20 COSTS (Dollars per pound)
Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 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 30 firms. Finally, use the green points (triangle symbol) to plot the short- run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 60 Supply (30 firms) 50 40 Supply (40 firms) Demand 30 20 0. 0. 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) If there were 30 firms in this market, the short-run equilibrium price of copper would be per pound. At that price, firms in this industry would 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 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. True False PRICE (Dollars per pound) 10
Transcribed Image Text:Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 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 30 firms. Finally, use the green points (triangle symbol) to plot the short- run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 60 Supply (30 firms) 50 40 Supply (40 firms) Demand 30 20 0. 0. 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) If there were 30 firms in this market, the short-run equilibrium price of copper would be per pound. At that price, firms in this industry would 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 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. True False PRICE (Dollars per pound) 10
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Multiplicative Exponential demand Model
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
SEE MORE TEXTBOOKS