➜>3(Dollars per pound)80PRICE7264564840322416 +800Demand120 240 360 480 600 720 840 960 1080 1200QUANTITY (Thousands of pounds)Because you know that competitive firms earn$Supply (10 firms)Supply (20 firms)If there were 30 firms in this market, the short-run equilibrium price of rhodium would be $wouldTherefore, in the long run, firms wouldTrue-4FalseSupply (30 firms)per pound. From the graph, you can see that this means there will beper pound. At that price, firms in this industrythe rhodium market.economic profit in the long run, you know the long-run equilibrium price must befirms operating in the rhodium 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 positive accounting profit.

A competitive market is one in which many producers compete with one another in order to provide the…

Answered: True or False: Assuming implicit costs…

True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. True 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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Question

➜>
3
(Dollars per pound)
80
PRICE
72
64
56
48
40
32
24
16 +
8
0
0
Demand
120 240 360 480 600 720 840 960 1080 1200
QUANTITY (Thousands of pounds)
Because you know that competitive firms earn
$
Supply (10 firms)
Supply (20 firms)
If there were 30 firms in this market, the short-run equilibrium price of rhodium would be $
would
Therefore, in the long run, firms would
True
-4
False
Supply (30 firms)
per pound. From the graph, you can see that this means there will be
per pound. At that price, firms in this industry
the rhodium market.
economic profit in the long run, you know the long-run equilibrium price must be
firms operating in the rhodium 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 positive accounting profit.

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