Question

5. 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) AVC MC O 0 3 27 30 6 9 12 15 18 21 24 QUANTITY (Thousands of pounds)

Answer 1

Price	QS by 20 firms	QS by 40 firms	QS by 60 firms
	20	40	60
16	240000	480000	720000
40	300000	600000	900000
52	320000	640000	960000
64	340000	680000	1020000
80	360000	720000	1080000

Supply (20 firms) Den and Supply (40 firms) PRICE (Dollars per pound) Supply (60 firms) 0 120 1080 1200 240 360 480 600 720 840 960 QUANTITY (Thousands of pounds)

Blank 1: 40

Blank 2: make economic loss

Blank 3: Exit

Blank 4: Zero

Blank 5: 52

Blank 6: 20

Given statement is False