Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X 5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. A-Z E T EI 80 72 64 bongo 56 ATC 48 COSTS (Dollars per pound) 40 32 ? 24 A+ 16 AVC MC 3 6 9 12 18 21 24 O 27 30 QUANTITY (Thousands of pounds) 1 43OF 11:40 AM Mostly cloudy Q Search W 3/28/2024Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... A CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X The following diagram shows the market demand for titanium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. ) Next, use the A-Z E purple points (diamond symbol) to plot the short-run industry supply curve when there are 40 firms. Finally, use the green points (triangle symbol) to o plot the short-run industry supply curve when there are 60 firms. EI + 80 72 bongo 64 Supply (20 firms) 56 Demand 48 Supply (40 firms) 40 PRICE (Dollars per pound) 32 Supply (60 firms) ? A+ 24 16 C+ Co O 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY (Thousands of pounds) 1 43OF Q Search W 11:40 AM Mostly cloudy 3/28/2024Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&elSBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X 72 64 Supply (20 firms) 56 Demand A-Z 48 Supply (40 firms) 40 o PRICE (Dollars per pound) 32 Supply (60 firms) 24 EI 16 + 1 2 Co 0 120 240 360 480 600 720 840 960 1080 1200 bongo QUANTITY (Thousands of pounds) If there were 60 firms in this market, the short-run equilibrium price of titanium would be | $ per pound. At that price, firms in this industry would . Therefore, in the long run, firms would the titanium market ? A+ Because you know that perfectly competitive firms earn economic profit 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 _ firms operating in the titanium industry in long-run equilibrium. C- O Grade It Now Save & Continue Continue without saving 1 43OF W 11:40 AM Mostly cloudy Q Search 3/28/2024Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&elSBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X 72 64 Supply (20 firms) 56 Demand 48 Supply (40 firms) A-Z 40 PRICE (Dollars per pound) o 32 Supply (60 firms) 24 EI 16 + Co 1 2 shut down 180 0 720 840 960 1080 1200 bongo earn a positive profit (Thousands of pounds) operate at a loss earn zero profit If ther market, the short-run equilibrium price of titanium would be | $ per pound. At that price, firms in this industry would . Therefore, in the long run, firms would the titanium market ? A+ Because you know that perfectly competitive firms earn economic profit 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 _ firms operating in the titanium industry in long-run equilibrium. C- O Grade It Now Save & Continue Continue without saving 1 43OF Q Search W 11:40 AM Mostly cloudy 3/28/2024Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&elSBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X 72 64 Supply (20 firms) 56 Demand A-Z 48 Supply (40 firms) 40 PRICE (Dollars per pound) o 32 Supply (60 firms) 24 EI 16 + Co 1 2 0 120 240 360 480 600 720 840 960 1080 1200 bongo QUANTITY (Thousands of pounds) enter exit neither enter nor exit If there were 60 firms in this market, the short-run equilibrium price of titan per pound. At that price, firms in this industry would . Therefore, in the long run, firms would the titanium market. ? A+ Because you know that perfectly competitive firms earn economic profit 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 _ firms operating in the titanium industry in long-run equilibrium. C- O Grade It Now Save & Continue Continue without saving 1 43OF Q Search W 11:40 AM Mostly cloudy 3/28/2024Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&elSBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X 72 64 Supply (20 firms) 56 Demand A-Z 48 Supply (40 firms) 40 PRICE (Dollars per pound) o 32 Supply (60 firms) 24 EI 16 + 1 2 Co 0 120 240 360 0 480 600 720 840 960 1080 1200 bongo QUANTITY (Thousands of pounds) zero If there were 60 firms in this market, the short-run equil positive e of titanium would be $ per pound. At that price, firms in this industry would . Therefore, in the lo s would the titanium market. negative ? A+ Because you know that perfectly competitive firms earn economic profit 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 _ firms operating in the titanium industry in long-run equilibrium. C- O Grade It Now Save & Continue Continue without saving 1 43OF Q Search W 11:41 AM Mostly cloudy 3/28/2024Sign in Homework: Perfect Competiti X MindTap - Cengage Learning X MindTap - Cengage Learning X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&elSBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Perfect Competition (Ch 22) X 72 64 Supply (20 firms) 56 Demand A-Z 48 Supply (40 firms) 40 PRICE (Dollars per pound) o 32 Supply (60 firms) 24 EI 16 + 1 2 Co 0 120 240 360 480 600 720 840 960 1080 1200 bongo QUANTITY (Thousands of pounds) 20 If there were 60 firms in this market, the short-run equilibrium price of titanium wo per pound. At that price, firms in this industry would . Therefore, in the long run, firms would 40 the titanium market ? 60 A+ Because you know that perfectly competitive firms earn _economic p he 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 firms operating in the titanium industry in long-run equilibrium. C- O Grade It Now Save & Continue Continue without saving 1 43OF W 11:41 AM Mostly cloudy Q Search 3/28/2024