First drop down options are as
followes: Shut down, Earn zero profit, Operate at a lost, Earn a
positive profit.
Secound drop down: Enter, Exit, Neither enter nor exit.
Thrid drop down: Zero, Negative, Positive
Fourth drop down: 20, 30, 40
MC POINTS are as followed:
(10,10); (15,15); (20,30); (27,70); (30,90)
Supply curve is the same as the marginal cost curve of the firm above the shutdown point.
P | Qs (1 firm) | Qs (20 firms) | Qs (30 firms) | Qs (40 firms) |
15 | 15 | 300 | 450 | 600 |
30 | 20 | 400 | 600 | 800 |
40 | 22 | 440 | 660 | 880 |
70 | 27 | 540 | 810 | 1080 |
90 | 30 | 600 | 900 | 1200 |
(All quantities are in thousands)
If there were 20 firms in this market, the short run equilibrium price of copper would be $ 40 per pound. At that price, firms in this industry would earn a positive profit (P > ATC). Therefore, in the long run, firms would enter the copper market.
Because you know that competitive firms earn zero economic profit in the long run, you know that 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.
80 Demand 70 50 Os (1o firms) -Qs (20 firms) Qs (30 firms) 30 20 10 0 200 400 600 800 1000 1200 Quantity (thousands of pounds)
First drop down options are as followes: Shut down, Earn zero profit, Operate at a lost,...
First Blue blank choices: earn a positive profit, operate at a
loss, earn zero profit, shut down.
Second Blue Blank Choices: enter, exit, neither enter nor
exit
Third Blue Blank Choices: negative, positive, zero
Last Blank: 10, 15, 20
7. Short-run supply and long-run equilibrium 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...
Possible Answers
1: Earn zero profit, Earn positive profit, shut down, operate at
a loss
2: Enter, Exit, Neither
3:Zero, Positive, Negative
4:10,15,20
Consider the perfectly 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 cost (AC), and average variable cost (AVC) curves shown on the following graph. 100 90 80 70 60 50 40 AC 30 20 AVC MC...
If there were 10 firms in this market, the short-run equilibrium
price of copper would be $___ per pound. At that price firms in
this industry would (shut down / operate at a loss / earn zero
profit / earn a positive profit). Therefore, in the long run firms
would (enter / exit / neither enter nor exit) the copper
market.
Because you know that competitive firms earn (positive / zero /
negative) economic profit in the long-run equilibrium price...
Please label coordinates to graph in (x,y) format for supply 10
firms, supply 15 firms, and supply 20 firms as well please.
for last statement options are
firms in this industry would (earn a positive profit, shut down,
operate at a loss, earn zero profit)
in the long run, firms would (enter, exit, neither enter nor
exit)
competetive firms earn (positive, negative, zero)
this means there will be (10, 15, 20)
5. Short-run supply and long-run equilibrium Consider the competitive...
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total profit earned by the firm represented is: A. $220. B. $275. C. $330 D. $605, 26. Refer to the graph above of a monopolistically competitive firm. If the firm maximizes profit, it will earn: A. zero economic profit this year. B. $320,000 economic profit this year. C. 584,000 economic profit this year. D. $56,000 economic profit this year. ATC AVC - 01 02 03...
QUESTION 1 Table 13-16 Quantity Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 $24 $50 3 $108 $40 Refer to Table 13-16. What is the total cost of producing 2 units of output? a. $76 b. $50 c. $58 d. $74 Figure 14-13 Suppose a firm in a competitive industry has the following cost curves: sem MC ATC AVC Refer to Figure 14-13. If the price is $6 in the...
Consider the competitive market for dress shirts. The following
graph shows the marginal cost (MC), average total cost (ATC), and
average variable cost (AVC) curves for a typical firm in the
industry.
On the following graph, use the orange points (square
symbol) to plot points along the portion of the
firm's short-run supply curve that corresponds to
prices where there is positive output. (Note: You
are given more points to plot than you need.)
At the current short-run market price,...
A firm will shut down in long-run if the a. Firm is making zero economic profits. b. Price is anywhere above the the minimum average variable cost (AVC) c. Price is above the minimum average total cost (ATC) d. Price is equal to the minimum average total cost (ATC) e. Price is anywhere below the minimum average total cost (ATC)
Deriving the short-run supply curve
Consider the competitive market for halogen lamps. The following
graph shows the marginal cost (MC), average total cost (ATC), and
average variable cost (AVC) curves for a typical firm in the
industry.
For each price in the following table, use the graph to
determine the number of lamps this firm would produce in order to
maximize its profit. Assume that when the price is exactly equal to
the average variable cost, the firm is indifferent...
1 Price The figure below captures a firm in a perfectly competitive industry. MC ATC AVC ا أ ا 1 2 3 4 5 6 7 8 Quantity Suppose the current price is $6. What will happen in the long run? O Nothing will happen in the long run. The firm is earning zero economic profit. O Since the firm is earning a positive economic profit, there is an incentive for new firms to enter the industry in the long...