The following graph plots the market demand curve for ruthenium.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 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 20 firms. Finally, use the green points (triangle symbol) toplot the short-run industry supply curve when there are 30 firms.PRICE (Dollars per pound)8072640358Supply (10 firms)48DemandSupply (20 firms)40322416800120240350 480 600 720 840 960 1080 1200QUANTITY (Thousands of pounds)Supply (30 firms)?If there were 20 firms in this market, the short-run equilibrium price of ruthenium would be $wouldTherefore, in the long run, firms wouldper pound. At that price, firms in this industrythe ruthenium market.Because you know that competitive firms earn$economic profit in the long run, you know the long-run equilibrium price must beper pound. From the graph, you can see that this means there will be firms operating in the ruthenium industry in long-runequilibrium.True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run eams negative accounting profit.O TrueO False

Market demand means the quantity of goods that all the consumers in a market are willing and able to…

per pound. From the graph, you can see that this means there will be firms operating in the ruthenium industry in long-run $ equilibrium, True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting profit. O True O False

per pound. From the graph, you can see that this means there will be firms operating in the ruthenium industry in long-run $ equilibrium, True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting profit. O True O 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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