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In: Economics

Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical

Consider the competitive market for copper. 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.

Consider the competitive market for copper. 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 0 5 10 15 2025 30 35 40 45 50 QUANTITY (Thousands of pounds)


Solutions

Expert Solution

P QS-1 FIRM QS-20 FIRMS 30 FIRMS 40 FIRMS
10 0 0 0 0
15 15000 300000 450000 600000
30 20000 400000 600000 800000
40 22500 450000 675000 900000
70 27500 550000 825000 1100000
90 30000 600000 900000 1200000

Blanks:-

1) 40

2) earn positive economic profits

3) enter the market

4) zero

5) 30

6) 30

The statement is True

Rahul Sunny answered 1 year ago
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