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 average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) 100 90 80 70 60 50 40 10 0 0 MC 5 ATC AVC 0 O O 10 15 20 25 30 35 QUANTITY (Thousands of pounds) 40 45 50 (?)
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 average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) 100 90 80 70 60 50 40 10 0 0 MC 5 ATC AVC 0 O O 10 15 20 25 30 35 QUANTITY (Thousands of pounds) 40 45 50 (?)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...
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If there were 20 firms in this market the short run equilibrium would be $___ per pound. At this price firms in the industry would _____. Therefore in the long run firms would _____ the titanium 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 each graph you can see that this means there will be __ firms operating in the titanium industry and long run equilibrium.
True or false assuming implicit cost are positive each of the firms operating in industry in the long run earns negative accounting profit.
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