Homework Help is Here – Start Your Trial Now!
Business
Economics
The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. PRICE (Dollars per pound) 100 90 80 70 60 50 40 30 20 10 0 0 Demand 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) ITT Supply (20 firms) Supply (30 firms) Supply (40 firms) If there were 30 firms in this market, the short-run equilibrium price of copper would be $ per pound. At that price, firms in this industry would Therefore, in the long run, firms would the copper market. Because you know that perfectly competitive firms earn run, you know the long-run equilibrium price must be $ can see that this means there will be equilibrium, economic profit in the long per pound. From the graph, you firms operating in the copper industry in long-run

The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. PRICE (Dollars per pound) 100 90 80 70 60 50 40 30 20 10 0 0 Demand 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) ITT Supply (20 firms) Supply (30 firms) Supply (40 firms) If there were 30 firms in this market, the short-run equilibrium price of copper would be $ per pound. At that price, firms in this industry would Therefore, in the long run, firms would the copper market. Because you know that perfectly competitive firms earn run, you know the long-run equilibrium price must be $ can see that this means there will be equilibrium, economic profit in the long per pound. From the graph, you firms operating in the copper industry in long-run

Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 4PA
See similar textbooks
icon
Related questions
Question
Uncertain and confused on what to do to solve these problems
The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. PRICE (Dollars per pound) 100 90 80 70 60 50 40 30 20 10 0 0 Demand 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Supply (20 firms) Supply (30 firms) HHAH Supply (40 firms) If there were 30 firms in this market, the short-run equilibrium $ per pound. At that price, firms in this industry would Therefore, in the long run, firms would Because you know that perfectly competitive firms earn run, you know the long-run equilibrium price must be $ I can see that this means there will be equilibrium, price of copper would be the copper market. economic profit in the long per pound. From the graph, you firms operating in the copper industry in long-run
Transcribed Image Text:The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. PRICE (Dollars per pound) 100 90 80 70 60 50 40 30 20 10 0 0 Demand 125 250 375 500 625 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Supply (20 firms) Supply (30 firms) HHAH Supply (40 firms) If there were 30 firms in this market, the short-run equilibrium $ per pound. At that price, firms in this industry would Therefore, in the long run, firms would Because you know that perfectly competitive firms earn run, you know the long-run equilibrium price must be $ I can see that this means there will be equilibrium, price of copper would be the copper market. economic profit in the long per pound. From the graph, you firms operating in the copper industry in long-run
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 total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) 100 8 8 8 8 8 90 80 60 70 60 50 40 30 10 + 0 100 T 0 MC D + ATC AVC The following diagram shows the market demand for copper. 5 10 15 20 25 30 35 40 QUANTITY (Thousands of pounds) 45 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. 50 D Supply (20 firms) ? Supply (30 firms) (?)
Transcribed Image Text: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 total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) 100 8 8 8 8 8 90 80 60 70 60 50 40 30 10 + 0 100 T 0 MC D + ATC AVC The following diagram shows the market demand for copper. 5 10 15 20 25 30 35 40 QUANTITY (Thousands of pounds) 45 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. 50 D Supply (20 firms) ? Supply (30 firms) (?)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Total Revenue and Total Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
SEE MORE TEXTBOOKS