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 variabile cost (AVC) curves plotted in the following graph COSTS (Dues per pound) 10 200 AVC 20 ** M 00 75 QUANTITY (Thunds of pounde The following graph plots the market demand curve for ruthenium, Use the orange points (aquare 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 plet 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 firms.
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 variabile cost (AVC) curves plotted in the following graph COSTS (Dues per pound) 10 200 AVC 20 ** M 00 75 QUANTITY (Thunds of pounde The following graph plots the market demand curve for ruthenium, Use the orange points (aquare 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 plet 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 firms.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...
Related questions
Question
![The following graph plots the market demand curve for nuthenium
Use the orange points (aquare symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You cat
disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry sveply curve) Next use the
purple points (diamond symbol) to plet the short-run industry supply curve when there are 13 firms. Finally, use the green points (trange bo
plot the short-run industry supply curve when there are 20 m
PRICED per pou
E
YOU
175 296 35 sees eerste te
QUANTITY (Thands of pound
Supply (10)
y (15)
If there were 10 firms in this markat, the short-run waitinum pnce of ruthenium would be
Therefore, in the long run, firms would
O True
ser pound. At that price, firms in this matry
the ruthenium market
Because you know that competitive firms a
con prot in the long run, you know the long-run qurum price must be
per pound from the graph, you can see that this means there will be
firma operating in the ruthenium industry in lang nun
O
True or False Assuming implicit costs are positive, each of the firms operating in this industry in the long run earms negative accounting pr](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f1d841c-a10a-4168-abf8-9112a54412b6%2F9ddb5120-1604-4619-bf84-002e23185cfb%2Fyoo3sf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following graph plots the market demand curve for nuthenium
Use the orange points (aquare symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You cat
disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry sveply curve) Next use the
purple points (diamond symbol) to plet the short-run industry supply curve when there are 13 firms. Finally, use the green points (trange bo
plot the short-run industry supply curve when there are 20 m
PRICED per pou
E
YOU
175 296 35 sees eerste te
QUANTITY (Thands of pound
Supply (10)
y (15)
If there were 10 firms in this markat, the short-run waitinum pnce of ruthenium would be
Therefore, in the long run, firms would
O True
ser pound. At that price, firms in this matry
the ruthenium market
Because you know that competitive firms a
con prot in the long run, you know the long-run qurum price must be
per pound from the graph, you can see that this means there will be
firma operating in the ruthenium industry in lang nun
O
True or False Assuming implicit costs are positive, each of the firms operating in this industry in the long run earms negative accounting pr
![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 (Duas per pound)
100
00
00
to
10
MC-D
16
ATC
AVC
20 20
ME 00 79 NO
QUANTITY (Thousands of pounds)
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 firms.
A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f1d841c-a10a-4168-abf8-9112a54412b6%2F9ddb5120-1604-4619-bf84-002e23185cfb%2F580zld_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 (Duas per pound)
100
00
00
to
10
MC-D
16
ATC
AVC
20 20
ME 00 79 NO
QUANTITY (Thousands of pounds)
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 firms.
A
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics, 7th Edition (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781285165875/9781285165875_smallCoverImage.gif)
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning