The following graph plots the market demand curve for nutheniumUse the orange points (aquare symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You catdisregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry sveply curve) Next use thepurple points (diamond symbol) to plet the short-run industry supply curve when there are 13 firms. Finally, use the green points (trange boplot the short-run industry supply curve when there are 20 mPRICED per pouEYOU175 296 35 sees eerste teQUANTITY (Thands of poundSupply (10)y (15)If there were 10 firms in this markat, the short-run waitinum pnce of ruthenium would beTherefore, in the long run, firms wouldO Trueser pound. At that price, firms in this matrythe ruthenium marketBecause you know that competitive firms acon prot in the long run, you know the long-run qurum price must beper pound from the graph, you can see that this means there will befirma operating in the ruthenium industry in lang nunOTrue or False Assuming implicit costs are positive, each of the firms operating in this industry in the long run earms negative accounting pr 7. Short-run supply and long-run equilibriumConsider the competitive market for ruthenium, Assume that no matter how many firms operate in the industry, every firm is identical and faces thesame marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graphCOSTS (Duas per pound)1000000to10MC-D16ATCAVC20 20ME 00 79 NOQUANTITY (Thousands of pounds)100The 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 15 firms. Finally, use the green points (triangle symbol) toplot the short-run industry supply curve when there are 20 firms.A

The supply curve shows the range of quantities that a producer is willing to provide to the market…

7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium, Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variabile cost (AVC) curves plotted in the following graph COSTS (Dues per pound) 10 200 AVC 20 ** M 00 75 QUANTITY (Thunds of pounde The following graph plots the market demand curve for ruthenium, Use the orange points (aquare 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 plet the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms.

7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium, Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variabile cost (AVC) curves plotted in the following graph COSTS (Dues per pound) 10 200 AVC 20 ** M 00 75 QUANTITY (Thunds of pounde The following graph plots the market demand curve for ruthenium, Use the orange points (aquare 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 plet the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...

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