Consider the competitive market for steel. Assume that, regardless of how many firms are in industry, every firm in the industry is identical and faces the marginal cost (MC), average tota (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per ton) 80 72 64 56 48 40 32 24 16 8 0 0 3 MC ATC 0 AVC 0 0 9 12 15 18 QUANTITY (Thousands of tons) 21 24 27 30 The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve wher there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve tha corresponds to prices where there is no output since this is the industry supply curve.) Next, the purple points (diamond symbol) to plot the short-run industry supply curve when there ar firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply cur when there are 60 firms.

Consider the competitive market for steel. Assume that, regardless of how many firms are in industry, every firm in the industry is identical and faces the marginal cost (MC), average tota (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per ton) 80 72 64 56 48 40 32 24 16 8 0 0 3 MC ATC 0 AVC 0 0 9 12 15 18 QUANTITY (Thousands of tons) 21 24 27 30 The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve wher there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve tha corresponds to prices where there is no output since this is the industry supply curve.) Next, the purple points (diamond symbol) to plot the short-run industry supply curve when there ar firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply cur when there are 60 firms.

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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