(Solved): 6. Short-run supply and long-run equilibrium Consider the competitive market for rhenium. Assume th ...

6. Short-run supply and long-run equilibrium Consider the competitive market for rhenium. Assume that no matter how many firms operate in the industry, same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the follo the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can egard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use t le points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symb the short-run industry supply curve when there are 30 firms. If there were 10 firms in this market, the short-run equilibrium price of rhenium would be per pound. At that price, firms in this industry would Therefore, in the long run, firms would. the rhenium market. Because you know that competive 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 rhenium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run eams negative accounting profit. True Faise