in the first picture 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.   in the second picture, graph the supply curves when there are 20, 30, and 40 firms in the market   If there were 20 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 _____________   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 copper industry in long-run equilibrium.   True or False: Each of the firms operating in this industry in the long run earns negative accounting profit. True   False

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. V AVC COSTS (Dollars per ton) 100 882 889 80 20 0 MC 5 25 30 35 QUANTITY (Thousands of tons) 15 20 10 45 40 50 The following diagram shows the market demand for steel.

7. Short-run supply and long-run equilibrium Consider the competitive market for rhenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. COSTS (Dollars per pound) 100 90 80 70 60 40 20 10 + 0 + 0 MC + 5 ATC AVC D 0 10 15 20 25 30 35 QUANTITY (Thousands of pounds) 40 + 45 50 ?

Consider the perfectly 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 ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves shown on the following graph

Initially, all firms in a perfectly competitive market are in long-run equilibrium. Assume that the market demand for the product produced by the firms in the market suddenly rises. Suppose the following graph shows the marginal revenue (MR) and marginal cost (MC) curves of a firm in this market at its initial long-run equilibrium, with an equilibrium price of P₁ and a profit-maximizing quantity of output of Q₁. Show the short-run effect of the increase in market demand on this firm by shifting the marginal revenue curve, the marginal cost curve, or both on the following graph. PRICE AND COST 2 MC Q₂ QUANTITY In the short run, the firm will respond by producing In the long run, some firms will respond by PRICE MR QUANTITY Supply MR Demand O Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects and the new long-run equilibrium after firms finish adjusting to the increase in market demand. MC the industry. Demand goods and…

6. Deriving the short-run supply curve The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for sun lamps. COSTS (Dollars) 100 20 80 TO 0 □ 5 D MC-D Price (Dollars per lamp) 10 20 32 40 50 60 ATC AVC Quantity (Lamps) DO 15 QUANTITY (Thousands of lamps) 50 For every price level given in the following table, use the graph to determine the profit-maximizing quantity of lamps for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero lamps and the profit-maximizing quantity of lamps.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. ? Produce or Shut Down? Profit or Loss?

The following graph shows the daily market for small cardboard boxes in San Diego. PRICE (Dollars per small box 10 9 Demand 0 161 6 QUANTITY (Millions of small boxes) 2 Supply 19 10 Suppose that Talero is one of more than a hundred competitive firms in San Diego that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Talero must take as given is

Avocados have been proven to bring many health benefits if consumed regularly. Many others including Gavin are huge fans of avocados and have plans to start a new business selling avocados. Assume the market for avocados to be perfectly competitive. Answer the following questions: a. If these firms are able to continue entering the market for avocados, it is likely that they are earning an economic profit. In order to earn an economic profit, firms must ensure that the price is above its Type ATC for Average Total Cost, AVC for Average Variable Cost, TC for Total Cost or VC for Variable Cost. b. Gavin decided to build an avocado farm in Brisbane. It is estimated that Gavin will need to spend $14.55 thousand on farming equipment costs. Gavin will also need to spend $20.95 thousand on labour and overhead costs. However, it is expected that Gavin will be able to sell 5 tonnes of avocados and gain revenue of $47.66 thousand from selling these avocados. Calculate the thousand. Answer to the…

Suppose Madison operates a handicraft pop-up retail shop that sells rompers. Assume a perfectly competitive market structure for rompers with a market price equal to $20 per romper. The following graph shows Madison's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for rompers for quantities zero through seven (including zero and seven) that Madison produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 0 -25 □ 0 ☐ 1 2 3 5 QUANTITY (Rompers) 4 6 Total Cost 7 8 o Total Revenue Profit

Consider the perfectly competitive market for steel, which is in long-run equilibrium. Now the demand for cars, for which steel is an essential input, decreases. As a result, we would expect that in the market for steel   Profits will increase in the long-run Firms will enter the market in the short-run The quantity produced by the individual firm will increase in the short-run. Profits will decrease in the short-run