Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hey can someone please help me with this I have worked on It but got stuck half way though task 2 Problem I In the

Hey can someone please help me with this I have worked on It but got stuck half way though task 2

image text in transcribedimage text in transcribed
Problem I In the world market for copper, there are two types of copper mines: Type 1 [primarily located in North America) and Type 2 (primarily located in Asia and South merica]. The world copper market is perfectly competitive. Each copper mine incurs direct material costs, energy costs and shipping costs. These costs depend on the output level and the per ton cost is constant. Each copper mine also has labor costs. The workers are hired on salaries and cannot be tired, so the labor costs do not depend on the output level. The costs are shown in the table below: Mines number directmaterial energy costs shippingcosts laborcosts capacity per mine of mines costs [per ton) [per ton] [per ton) (per month) (tons per month) Type 1 50 $220 $250 $00 $45000 30,000 Type 2 50 $100 $200 $100 $30000 100.000 Task 1: Draw the world supply curve. The quantity on the horizontal axis is measured in tons per month. Task 2: The world demand for copper in Ianuaryis as follows: QB = 7, 000, 000 lP. where the quantity is measured in tons and the price is measured in dollars. What is the competitive equilibrium price and quantity? Illustrate them on the gure above. Moreover, how much copper will be produced by all of the Type 1 mines together at the equilibrium? How much oopperwill he produced by all of the Type 2 at the equilibrium? Task 3: The world demand for copper in February is as follow: QB. = 10, [101], 000 100013, where the quantity is measured in tons and the price is measured in dollars. Redo Task 2 above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resources In The Urban Economy

Authors: Mark Perlman

1st Edition

1317332474, 9781317332473

More Books

Students also viewed these Economics questions

Question

Define self-awareness and cite its benefits.

Answered: 1 week ago