How would I do this? Just D File Edit ViewGo ToolsWindow Helpa practice questions for midterm exam_fall 2021.pdf (page 7 of 7)EditedQ SearchD) What will happen to the industry in the (new) long run? Please Illustrate your answer andexplain in a couple of sentences.5) Refer to EFigure &8 What is the total revenue from nroducing the profit-maximizing levDD Edit ViewGoToolsWindow Helpa practice questions for midterm exam_fall 2021.pdf (page 5 of 7) EditedQ SearchSection III: Long Question. Answer all parts of this question1. Consider the market for face-masks in Connecticut. Assume that this market is characterizedby the following set of conditions:i) The industry operates under perfect competition, and is considered to be a constant-returns-to-scale industry.ii) Each firm that produces face-masks has a set of “typically" shaped cost curves.iii) The market demand for face-masks is downward sloping, and the short run market supplyof face-masks is upward sloping, indicating that at higher prices more can be supplied.iv) All face-masks produced by each firm are identical.A) Assume that initially the market was in long run equilibrium with Price Po, and Qo. Illustratethe long-run situation for both a "typical" firm and the industry as a whole. Clearly and fullylabel each diagram. What were the profits of the typical firm producing face-masks?INDUSTRYTYPICAL FIRMimizing level of5) Refer to Figure 8 8 What is the total revenueNOVP2.DDD00FBF9F5F6F7F2F3%$0%

No perfectly competitive firm acting alone can influence the market cost. Notwithstanding, the blend…

Answered: D) What will happen to the industry in…

D) What will happen to the industry in the (new) long run? Please Illustrate your answer and explain in a couple of sentences.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 1CQQ

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Section III: Long Question. Answer all parts of this question
1. Consider the market for face-masks in Connecticut. Assume that this market is characterized
by the following set of conditions:
i) The industry operates under perfect competition, and is considered to be a constant-returns-to-
scale industry.
ii) Each firm that produces face-masks has a set of “typically" shaped cost curves.
iii) The market demand for face-masks is downward sloping, and the short run market supply
of face-masks is upward sloping, indicating that at higher prices more can be supplied.
iv) All face-masks produced by each firm are identical.
A) Assume that initially the market was in long run equilibrium with Price Po, and Qo. Illustrate
the long-run situation for both a "typical" firm and the industry as a whole. Clearly and fully
label each diagram. What were the profits of the typical firm producing face-masks?
INDUSTRY
TYPICAL FIRM
imizing level of
5) Refer to Figure 8 8 What is the total revenue
NOV
P
2.
DD
D00
FB
F9
F5
F6
F7
F2
F3
%$
0%

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