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Assume that prior to the outbreak of the coronavirus (Covid-19), the natural gas industry was in Long Run Equilibrium (LRE). . Using our side-by-side graph
Assume that prior to the outbreak of the coronavirus (Covid-19), the natural gas industry was in Long Run Equilibrium (LRE). . Using our side-by-side graph methodology (with market on the left and individual firm on the right), graphically depict the market equilibrium Po and Qo. the optimal output of an individual firm representative of the other firms in the industry at this LRE (labeled as q), and the individual firm's profit if any (shaded and clearly labeled). . Provide a brief narrative explaining the setting and the profitability of an individual firm in an LRE (including why there is a certain level of profit in this setting)
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