QUESTION 10In an increasing cost industry, the long-run market supply curve isbecause the long runis increasing.downward sloping; average variable cost (AC)upward sloping; fixed cost (FC)downward sloping; marginal cost (MC)upward sloping; average cost (AC)QUESTION 11In the long run, each perfectly competitive firm has long run AC = 4+5Q+20/Q and MC=4+10Q. What is the long run equilibrium price P*?$20$24$4

D) Upward sloping; average cost Explanation: In an increasing-cost industry (when the long-run…

Answered: QUESTION 10 In an increasing cost…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a perfectly competitive market for wheat in Dallas. There are 110 firms in the industry, each of which has the cost curves shown on the following graph: The following graph shows the market demand for wheat. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Note: 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. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Then, place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) At the current short-run market price,…
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Question 35 Suppose all firms in a perfectly competitive industry have marginal cost of producing q units is MC = 8 + 16q. The industry demand curve is given by P = 488 – Q. The price of the good is $200. What is this firm’s optimal short-run quantity and how many firms produce this good in the short run? 12 units and 12 firms 48 units and 24 firms 192 units and 24 firms 12 units and 24 firms
Please correct answer and don't use hend raiting
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. 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. COSTS (Dollars per pound) 80 72 64 56 48 40 32 24 16 8 0 0 MC ATC AVC 4 8 12 16 20 24 QUANTITY (Thousands of pounds) 0 n 28 32 U 36 40 (?)
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