consider the competitive market for rhodium. Assume that no matter how many firms operate in the industry, every firm is identical and faces theame marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph.COSTS (Dollars per pound)8072645640322410604MC-DATCAVCD8 12 16 20 24 20 32 36 40QUANTITY (Thousands of pounds)The following graph plots the market demand curve for rhodium.? Omework (Ch 14)PRICE (Dollars per pound)564540322416.Demand00 120 240 360 480 600 720 840 960 1060 1200QUANTITY (Thousands of pounds)Because you know that competitive firms earnSupply (10 tims)Supply (20 firms)If there were 10 firms in this market, the short-run equilibrium price of rhodium would be 5wouldTherefore, in the long run, firms would,TrueO FalseSupply (30 firms)per pound. From the graph, you can see that this means there will beper pound. At that price, firms in this industry.the rhodium market.economic profit in the long run, you know the long-run equilibrium price must befirms operating in the rhodium industry in long-run equilibrium.True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit.

Perfect competition is a market consisting of a large number of buyers and sellers. In this market…

If there were 10 firms in this market, the short-run equilibrium price of rhodium would be 5 would Therefore, in the long run, firms would per pound. At that price, firms in this industry the rhodium market. Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be firms operating in the rhodium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. O True O False

If there were 10 firms in this market, the short-run equilibrium price of rhodium would be 5 would Therefore, in the long run, firms would per pound. At that price, firms in this industry the rhodium market. Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be firms operating in the rhodium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit. O True O False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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