Answer:
Price |
Supply(in Thousands) Q |
N=20(in thousands) Q*20 |
N=30(in thousands) Q*30 |
N=40(in thousands) Q*40 |
15 |
15 |
300 |
450 |
600 |
30 |
20 |
400 |
600 |
800 |
40 |
22.5 |
450 |
675 |
900 |
70 |
27.5 |
550 |
825 |
1100 |
90 |
30 |
600 |
900 |
1200 |
Graph:
If there were 20 firms in this market, the short-run equilibrium price of copper would be $40
Therefore, in the long run, firms would $per pound. At that price, firms in this industry would earn positive economic profits(as ATC < price i.e 30<40).
Therefore in the long run firms would enter the copper market
Because you know that perfectly competitive firms earn zero economic profit in the long run, you know the long-run equilibrium price must be $ 30 per pound. From the graph, you can see that this means there will be 30 firms operating in the copper industry in long-run equilibrium
We were unable to transcribe this imageThe following diagram shows the market demand for copper. Use...
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