I". Short-run supply and longrun equilibrium Consider the competitive market for rhodium. Assume that no matter how many firms operate in the industry, every film is identical and faces the same marginal cost {MC}, average total cost (ATE), and average variable cost (AVE) curves plotted in the following graph. If there were 10 rms in this market, the short-run equilibrium price of rhodium would be per pound. At that price, rms in this industryr would 7 . Therefore, in the long run, rms would V the rhodium market. Because you knowI that competitive rms earn V economic pro' ow the long-run equilibrium price must be per pound. From the graph, you can see that this means there wi gin the rhodium industry.r in long-run equilibrium. neither enter nor exit True or False: Assuming implicit costs are positive, each of the firms operati long run earns negative amounting prot. 0 True 0 False Because you knowI that competitive rms earn 7 economic prot in the long run, you knowI the long-run equilibrium price must be per pound. From the graph, you can is means there will be V rms operating in the rhodium industry in longrun equilibrium. negative True or False: Assuming implicit costs are posi: positive the firms operating in this industryr in the long run earns negative accounting prot. 0 True zero O False If there were 10 rms in this market, the shortrun equilibrium price of rhodium would be per pound. At that price, rms in this industry would V .Therefore, in the long run, rms would V the rhodium market. Because you know that competitive rms earn V economic prot in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be 7 rms operating in the rhodium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in ustry in the long run earns negative aooounling prot. 20 0 True - 30 O False - True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounling profit. 0 True 0 False