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Consider the state of battery metal mining firms in 2024. With the assumption that each firm's cost curves remain unchanged, depict a sample price in
Consider the state of battery metal mining firms in 2024. With the assumption that each firm's cost curves remain unchanged, depict a sample price in 2024 that would lead the mine to shut down in the short run. Using the graph from Question 5, label the new price in 2024 as P1 where the battery metal mining firm will shut down. Please explain why the firm would choose to shut down rather than to operate. If the firm shuts down, what will the firm's profit be equal to? What is the price at which the firm would be indifferent between shutting down or continuing to operate in the short run? Please show this price graphically, labeling it as PSD
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