Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 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 30 firms. Finally, use the green points (triangle symbol) toplot the short-run industry supply curve when there are 40 firms.Note: Points will snap to the quantities of output.PRICE (Dollars per tonne)1009020708050Supply (20 firms)Supply (30 firms)A40DemandSupply (40 firms)30201000123250 373 500 623 750 873 1000 1123QUANTITY (Thousands of tonnes)1250?If there were 20 firms in this market, the short-run equilibrium price of steel would be $would. Therefore, in the long run, firms wouldBecause you know that perfectly competitive firms earnmust be $run equilibrium.per tonne. At that price, firms in this industrythe steel market.per tonne, From the graph, you can see that this means there will beeconomic profit in the long run, you know the long-run equilibrium pricefirms one

Answered: Use the orange points (square symbol)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For each price in the following table, use the graph to determine the number of lamps this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero lamps and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price (Dollars per lamp) 15 20 PRICE (Dollars per lamp 80 RS232 70 26 25 55 70 85 10 588 288 8 COSTS (Dolars) 20 On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) (? 10 0 10 D Quantity (Lamps) 0 0 Either 0 or 45,000 10 60,000 65,000 70,000 MC-D 20 D 20 30 40 50 60 75 NO QUANTITY (Thousands of…
If there were 60 firms in this market, the short-run equilibrium price of titanium would be $________ per kilogram. At that price, firms in this industry would (earn a positive profit, shut down, earn zero profit, operate at a loss). Therefore, in the long run, firms would ( enter, exit, neither enter nor exit) the titanium market. Because you know that perfectly competitive firms earn (positive, zero, negative) economic profit in the long run, you know the long-run equilibrium price must be $_______ per kilogram. From the graph, you can see that this means there will be (20, 40, 60) firms operating in the titanium industry in long-run equilibrium.
If there were 10 firms in this market, the short-run equilibrium price of steel would be $______per ton. At that price, firms in this industry would ______(shut down/operate at a loss/ earn a positive profit/ earn zero profit). Therefore, in the long run, firms would__________(enter/ exit/ neither enter nor exit) the steel market. Because you know that competitive firms earn______(zero/ negative/ positive) economic profit in the long run, you know the long-run equilibrium price must be $_____per ton. From the graph, you can see that this means there will be_____(10/20/30) firms operating in the steel industry in long-run equilibrium.
Illustrate to the right, a graph showing a company being profitable in a competitive market in the Long Run selling its product at Market Price (MP*) based on its Average Variable Cost (AVC) and Average Total Cost (ATC) and Marginal Cost (MC). Identify each key point on the graph. Observe the Short - Run Loss information illustrated in the graph to the right. With respect to Price (P*"), Average Variable Cost (AVC), Average Total Cost (ATC), Marginal Revenue (MR), and Marginal Cost (MC), what assumption would you make if the firm was selling its product at P What would happen if this were to continue in the long run? Is there a Shut Down point? ** ? Notice that MR = P
The diagram to the right shows the long-run equilibrium for a competitive market for three different levels of demand (Do, D₁, and D₂). Assume that firms earn a normal level of profits at each market equilibrium. Illustrate the long-run industry supply curve. Using the line drawing tool, draw the long-run industry supply curve. Label this curve 'LRIS'. Note: Carefully follow the instructions above and only draw the required object. C Price per unit ($) 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- 0.00+ 0.0 Po -So 0.4 P₁ P₂ 0.8 1.2 1.6 2.0 Units of output, q (millions) 2.4 2.8
Suppose that the perfectly competitive tuna Industry is In long-run equilibrium at a price of $3 per can of tuna and a quantity of 600 million cans per year. Suppose the Surgeon General Issues a report saying that eating tuna is bad for your health. The Surgeon General's report will cause consumers to demand Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply X Demand 400 600 800 QUANTITY (Millions of cans) 0 0 In the long run, some firms will respond by 5 0 200 0 200 Demand 1000 Shift the supply curve, the demand curve, or both on the following diagram to Illustrate both the short-run effects of the Surgeon General's announcement and the new long-run equilibrium after firms…
On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.)
The Invisible Hand Principle states that individuals' independent efforts to maximize their gains will generally be beneficial for society and result in the socially optimal allocation of resources (Need help? Read chapter 4.6 of the textbook, here: https://playconomics.com/textbooks/view/playconomics4-2019t3/part2/ch4/s6) in any type of market. particularly in the short run. if the market is perfectly competitive. if firms are free to enter but not to exit the market. None of these.
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in New York City. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: COST (Cents per bushel) 100 90 80 70 60 50 40 30 20 10 0 ATC 0 5 AVC 10 15 20 25 30 35 40 QUANTITY OF OUTPUT (Thousands of bushels) MC The following graph shows the market demand for wheat. 45 50 ?
Consider the perfectly 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) PRICE (Dollars per por 100 90 80 70 60 50 40 30 20 100 10 50 0 80 70 60 50 40 30 20 10 0 The following diagram shows the market demand for copper. 0 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: 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.) Next, use the purple points (diamond symbol) to plat the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run Industry supply curve when there are 40 firms. MC D 0 5 10 ATC H AVC D 0 15…
The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. 200 180 160 140 120 100 80 60 40 PRICE (Dollars per unit) + Demand 20 0 01 2 3 4 5 6 7 8 9 10 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units). Demand Price (Dollars per unit). 5 100.00 ?
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 can 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. PRICE (Dollars per pound) 80 72 64 03 58 Supply (10 firms) 48 Demand Supply (20 firms) 40 32 24 16 8 0 0 120 240 350 480 600 720 840 960 1080 1200 QUANTITY (Thousands of pounds) Supply (30 firms) ? If there were 20 firms in this market, the short-run equilibrium price of ruthenium would be $ would Therefore, in the long run, firms would per pound. At that price, firms in this industry the ruthenium market. Because you…

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