A Course Modules: ECO-261-42 - S X* MindTap - Cengage Learning+8 https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5982812366321327711334359447&elSBN=9780357133606&id=105044...Elle v«CENGAGE MINDTAPQ Search this courseA My HomeHomework (Ch 14)7. Short-run supply and long-run equilibriumCoursesConsider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical andO Catalog and Study Toolsfaces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.A-ZPartner OffersEE Rental OptionsCollege Success TipsCareer Success Tips80RECOMMENDED FOR YOU726456Study HacksbongoATCStudent Tips on BalancingMultiple Finals24HelpAVC16Give FeedbackMC O80481216202428323640QUANTITY (Thousands of pounds)9:06 PMO Type here to searchW3/31/2021COSTS (Dollars per pound) A Course Modules: ECO-261-42 - S X* MindTap - Cengage Learningb My Questions | bartlebyô https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5982812366321327711334359447&elSBN=9780357133606&id=105044...Elle v«CENGAGE MINDTAPQ Search this courseA My HomeHomework (Ch 14)The following diagram shows the market demand for copper.CoursesO Catalog and Study ToolsUse 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 theA-ZPartner Offerspurple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) toEE Rental Optionsplot the short-run industry supply curve when there are 30 firms.College Success TipsCareer Success TipsRECOMMENDED FOR YOU8072Supply (10 firms)64Study Hacks56bongoStudent Tips on Balancing48DemandSupply (20 firms)Multiple Finals40Supply (30 firms)Help24Give Feedback168120240360480600720840960 1080 1200QUANTITY (Thousands of pounds)9:07 PMO Type here to searchw3/31/20211PRICE (Dollars per pound)

Supply curve shows the relationship between price and quantity supplied. It shows the quantity of a…

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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Consider a market with 90 firms, each firm has a short-run total cost function as follows: TC(q) = 5q2, and a marginal cost function: MC(q) = 10q. Market demand is given by equation Qd(p) = 200 - p. a) What is the fixed cost? Solve the average variable cost function in the short-run. b) What is the supply function of each firm? c) Solve for the short-run equilibrium outcome: P*, Q* and q*. d) What is one firm's economic profit in this market?
7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium. 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 point) 8 100 20 80 20 0 a MC 10 ATC AVC O □ 20 30 50 80 TO QUANTITY (Thousands of pounds) 20 100 The following graph plots the market demand curve for ruthenium. 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 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20…
Explain how the following events may affect the profit rate for a U.S. firm and industry (be sure to define your measure(s) of the profit rate) :Consider both the immediate impact and the possible long run implications: (1) across firms within an industry; (2) across industries and (3) across nations please long and mindful answers that covers all three categories. j) Removal of all subsidies to the U.S. agriculture sector k) Reduction in the federal tax rate on profit income
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) 80 72 64 56 48 40 32 24 16 8 0 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Thousands of pounds) Because you know that competitive firms earn $ Demand Supply (10 firms) True Supply (20 firms) If there were 20 firms in this market, the short-run equilibrium price of rhenium would be $ would Therefore, in the long run, firms would O False Supply (30 firms) per pound. From the graph, you can see that this means there will be ? per pound. At that price,…
6. Short-run supply and long-run equilibrium Consider the perfectly 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. (?) 80 72 64 56 ATC 48 40 32 24 18 AVC 8 MC O 12 15 18 21 24 27 30 QUANTITY (Thousands of tons) COSTS (Dollars per ton) 3.
Suppose that firm 1 is a restaurant, whose costs are ingredients, staff and space. Ingredients and staff are paid for weekly and staff can be hired or fired at will. The rental for the space is a one year lease, to move out of this space and into a smaller or larger one would take at least one year. Firm 2 is a door-to-door sales firm where the costs are inventory and staff. Both are paid every two weeks, and staff can be fired or fired at will (but must be paid for the current two weeks) while inventory can be bought or sold within a week. Is one month within the “short run” for firm 1? Is one month within the “short run” for firm 2? Explain your answer.
2. Consider a market with 90 firms, each firm has a short-run total cost function as follows: TC(q) = 5q2, and a marginal cost function: MC(q) = 10q. Market demand is given by equation Qd(p) = 200 - p. a. What is the fixed cost? Solve the average variable cost function in the short-run. b. What is the supply function of each firm? c. Solve for the short-run equilibrium outcome: P*, Q* and q*. d. What is one firm's economic profit in this market? e. Consider a different market structure, where there is only one firm, interpreted as a monopolist, and then critically discuss the impact on equilibrium price and quantity. Discuss total surplus for these two types of market structures.
pshotic 166& 5. Profit maximization and shutting down in the short run Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 100 90 80 ATC 70 60 40 30 AVC 20 10 MC 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of ovens) Σ 50 PRICE (Dollars per oven)
7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium. 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 40 30 20 10 0 0 MC D 5 10 ATC 15, 15 AVC ☐ 15 20 25 30 35 QUANTITY (Thousands of pounds) 40 + 45 50 The following graph plots the market demand curve for ruthenium. (?)
Consider the perfectly competitive market for titanium. 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. 18, 80 80 72 64 56 ATC 48 40 32 24 16 AVC 8 + MC O 3 12 15 18 21 24 27 30 QUANTITY OF OUTPUT (Thousands of pounds) COSTS (Dollars per pound)