Question

7. Short-run supply and long-run equilibrium Consider the competitive market for steel. 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 80 72 64 58 48 40 O 32 24 16 0 3 691 15 18 21 24 27 30

Answer 1

32 0 24 o 2 o 40 C o 220 34 0 36 0 C4 C1 O 10 2 0 g0 720 og o n 260 t 2 5 6 uo 3 ari 16 120 248 3420 uo coTo la guantit marka+ be 扌40 pp.Yt-o n , 月よ.that Pr i oe> tf. Yon S irm would.exit om

the long mn euilibrium piea must be 52 im tee steel imdusiy in ong n eb. stateomont is False