Question: Any help would be amazing, especially with the graphs Consider the competitive market for titanium. Assume that, regardless of how many firms are in the

Any help would be amazing, especially with the graphs

Consider the 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.

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 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 plot the short-run industry supply curve when there are 60 firms.

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.

Because you know that 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.

True or False: Assuming implicit costs are positive, each of the firms operating in this industry, in the long run, earns positive accounting profit.

True

False

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