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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to
plot the short-run industry supply curve when there are 40 firms.
100
90
Supply (20 firms)
80
70
60
Supply (30 firms)
50
40
Supply (40 firms)
Demand
30
10
123
250
373
500
623
750
873
1000 1123 1250
QUANTITY (Thousands of pounds)
If there were 20 firms in this market, the short-run equilibrium price of titanium would be $
per pound. At that price, firms in this industry
would
Therefore, in the long run, firms would
the titanium market.
Because you know that perfectly competitive firms earn
economic profit in the long run, you know the long-run equilibrium price must
be $
per pound. From the graph, you can see that this means there will be
firms operating in the titanium industry in long-run
PRICE (Dollars per pound)
20
Transcribed Image Text:purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 60 Supply (30 firms) 50 40 Supply (40 firms) Demand 30 10 123 250 373 500 623 750 873 1000 1123 1250 QUANTITY (Thousands of pounds) If there were 20 firms in this market, the short-run equilibrium price of titanium would be $ per pound. At that price, firms in this industry would Therefore, in the long run, firms would the titanium market. Because you know that perfectly competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be $ per pound. From the graph, you can see that this means there will be firms operating in the titanium industry in long-run PRICE (Dollars per pound) 20
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.
100
90
80
70
60
50
40
АТС
30
20
AVC
10
MC O
10
15
20
25
30
35
40
45
50
QUANTITY (Thousands of pounds)
COSTS (Dollars per pound)
Transcribed Image Text: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. 100 90 80 70 60 50 40 АТС 30 20 AVC 10 MC O 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pounds) COSTS (Dollars per pound)
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