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If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would Therefore, in the long run, firms would Because you know that 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 ruthenium industry in long-run equilibrium. 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 positive accounting profit. O True O False

If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would Therefore, in the long run, firms would Because you know that 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 ruthenium industry in long-run equilibrium. 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 positive accounting profit. O True O False

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Blank Options:

Blank One: (shut down, operate at a loss, earn a positive profit, or earn zero profit).

Blank Two: (enter, exit, or neither enter or exit).

Blank Three: (zero, positive, or negative).

Blank Four: (10, 20, or 30)

If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would . Therefore, in the long run, firms would Because you know that competitive firms earn $ per pound. From the graph, you can see that this means there will be equilibrium. True per pound. At that price, firms in this industry the ruthenium market. economic profit in the long run, you know the long-run equilibrium price must be firms operating in the ruthenium industry in long-run True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. False
Transcribed Image Text:If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would . Therefore, in the long run, firms would Because you know that competitive firms earn $ per pound. From the graph, you can see that this means there will be equilibrium. True per pound. At that price, firms in this industry the ruthenium market. economic profit in the long run, you know the long-run equilibrium price must be firms operating in the ruthenium industry in long-run True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. False
Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the 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 same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. COSTS (Dollars per pound) 8238922. 72 64 50 16 0 MC-D ATC 0 AVC O 8 12 16 20 24 28 QUANTITY (Thousands of pounds) D 32 40 ? PRICE (Dollars per pound) 80 72 56 48 40 32 24 16 8 0 + 0 Demand 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Thousands of pounds) 0 Supply (10 firms) Supply (20 firms) A Supply (30 firms)
Transcribed Image Text:Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the 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 same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. 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 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. COSTS (Dollars per pound) 8238922. 72 64 50 16 0 MC-D ATC 0 AVC O 8 12 16 20 24 28 QUANTITY (Thousands of pounds) D 32 40 ? PRICE (Dollars per pound) 80 72 56 48 40 32 24 16 8 0 + 0 Demand 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Thousands of pounds) 0 Supply (10 firms) Supply (20 firms) A Supply (30 firms)
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