7. Short-run supply and long-run equilibriumConsider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical andfaces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.100908070605040ATC3020AVC10MC O+++102030405060708090100QUANTITY (Thousands of tons)COSTS (Dollars per ton)

Answered: Image /qna-images/answer/36d2aeb5-1c8c-4900-bc67-56dda7f0fb04.jpg

onsider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and aces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.

onsider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and aces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

In perfect competition, if the marginal cost increases which way does the curve shift? what are some things that would increase the marginal cost curve and if the MC curve shifts then does the ATC curve?
Sketch a marginal cost curve for a firm that has constant marginal costs of production up to its capacity of 500 units but which cannot increase its output beyond that capacity PLEASEE SHOW THE CURVE
Suppose that a firm's long-run average total costs of producing smart phones increases as it produces between 50,000 and 60,000 smart phones. For this range of output, the firm is experiencing
Define the term "sunk costs" and illustrate with an example. View keyboard shortcuts
depict a ATC curve, one where the firm has negative profits(π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determinewhether to shutdown or keep producing at Q = 1000.
What are transaction costs? How do transaction costs affect the boundaries of a firm?
Classify the following milk bar short-run costs as fixed cost or variable cost Milk truck Fruit freezer Cost of milk sold each day ii) Assuming the following are the costs of your milk bar after the end of the second week answer the question below based on the following information. Fixed cost increased from 100 to 150 Variable cost increases from 220 to 300 Milk output increases from 450 to 620 a) What is the average total cost during the second week. Show your work b) What is the marginal cost. Show your work
What are the advantages of scale in capitalist competition?
Why is the existing firm experience will get normal profit in the long run?
3. XYZ corporation produces widgets. Its short-run marginal cost curve is given by MC (q) = 10 – 5q + q² (this is a parabola whose minimum occurs at q = 2.5). XYZ's fixed costs are 10. In a two panel diagrams, graph the following cost curves: (a) total cost, (b) total variable cost, (c) total fixed cost, (d) marginal cost, (e) average variable cost, and (f) average total cost. Your diagrams do not need to be scale, but must be internally consistent (i.e. the relationships between different curves must be correct). You do not need to find mathematical expressions for the other cost curves – you only need to sketch lines that are consistent with the shape of the marginal cost curve.
At a university faculty meeting in 2012, a proposal was made to increase the housing benefits for new faculty to keep pace with the high cost of housing. What will likely be the long-run effect of this proposal?
The following graph shows the demand curve, as well as the AVC, ATC and MC curves of a company selling rolled oats in a perfectly competitive market. Use the graph to answer the questions. The goal of the company is to maximize its profit. How many boxes of rolled oats should it sell to attain this goal? What price will it charge? How much profit does this firm make per month? Will this company produce or shut down in the short run? Why? Will this firm exit the market for rolled oats in the long run or not? Why?