Question

Short-run supply and long-run equilibrium, please and thank you

Consider the competitive market for titanium. 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 kilogram) ATC + MC O AVC ott 0 5 10 15 20 25 30 35 40 QUANTITY (Thousands of kilograms) 45 50

Answer 1

P	QS-1 FIRM	QS-20 FIRMS	30 FIRMS	40 FIRMS
10	0	0	0	0
15	15000	300000	450000	600000
30	20000	400000	600000	800000
40	22500	450000	675000	900000
70	27500	550000	825000	1100000
90	30000	600000	900000	1200000

Supply (20 firms) Supply (30 firms) + PRICE (Dollars per kilogram) + + Supply (40 firms) Demand + + + 0 125 1250 250 375 500 625 750 875 1000 1125 QUANTITY (Thousands of kilograms)

Blanks-

1) 40

2) positive economic profits

3) enter

4) zero

5) 30

6) 30

The statement is False