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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
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 aboveStep by Step Solution
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