Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get upvote for sure. Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces thesame marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph.COSTS (Dolars per pound)PRICE (Dollars per pound)1009083 8700088850403020100109080807028 29 RR20 3040 50 00 7080QUANTITY (Thousands of pounds).The following graph plots the market demand curve for ruthenium.5040Use 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 thepurple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) toplot the short-run industry supply curve when there are 20 firms.20100MC-D01040,30ATCAVC90Demand1000 125 250 375 500 625 750 875 1000 1125 1250QUANTITY (Thousands of pounds)0Supply (10 firms)+Supply (15 firms)Supply (20 firms) If there were 10 firms in this market, the short-run equilibrium price of ruthenium would bewould earn a positive profit. Therefore, in the long run, firms wouldenterBecause you know that competitive firms earneconomic profit in the long run, you know the long-run equilibrium price must be$44 per pound. From the graph, you can see that this means there will be 20 firms operating in the ruthenium industry in long-runzeroequilibrium.$52 per pound. At that price, firms in this industrythe ruthenium market.True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting profit.TrueFalse

Demand, or the desire for a commodity, is defined as a person's willingness to buy a specific…

If there were 10 firms in this market, the short-run equilibrium price of ruthenium would be would earn a positive profit Therefore, in the long run, firms would enter Because you know that competitive firms earn zero economic profit in the long run, you know the long-run equilibrium price must be $44 per pound. From the graph, you can see that this means there will be 20 firms operating in the ruthenium industry in long-run equilibrium. $52 per pound. At that price, firms in this industry the ruthenium market. 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

If there were 10 firms in this market, the short-run equilibrium price of ruthenium would be would earn a positive profit Therefore, in the long run, firms would enter Because you know that competitive firms earn zero economic profit in the long run, you know the long-run equilibrium price must be $44 per pound. From the graph, you can see that this means there will be 20 firms operating in the ruthenium industry in long-run equilibrium. $52 per pound. At that price, firms in this industry the ruthenium market. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get upvote for sure.

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 (Dolars per pound)
PRICE (Dollars per pound)
100
90
83 8
70
00
888
50
40
30
20
100
10
90
8
0
80
70
28 29 RR
20 30
40 50 00 70
80
QUANTITY (Thousands of pounds).
The following graph plots the market demand curve for ruthenium.
50
40
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.
20
10
0
MC-D
0
10
40,30
ATC
AVC
90
Demand
100
0 125 250 375 500 625 750 875 1000 1125 1250
QUANTITY (Thousands of pounds)
0
Supply (10 firms)
+
Supply (15 firms)
Supply (20 firms)

If there were 10 firms in this market, the short-run equilibrium price of ruthenium would be
would earn a positive profit. Therefore, in the long run, firms would
enter
Because you know that competitive firms earn
economic profit in the long run, you know the long-run equilibrium price must be
$44 per pound. From the graph, you can see that this means there will be 20 firms operating in the ruthenium industry in long-run
zero
equilibrium.
$52 per pound. At that price, firms in this industry
the ruthenium market.
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

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