7. Shert-run evpply and long-run equilibrium Conwider the competitive market for thenium, Astume that no...
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7. Shert-run evpply and long-run equilibrium Conwider the competitive market for thenium, Astume that no matter how many farms operate in the indastry, every firm is lisestical and faces the tame marginal cost (MC), tweraje total cost (ATC), and average variable cost (AvC) curves plotted in the followitg gragh. Not the that ont induster Ausply corve whes there are 30fxms. If there were 20 firms in this mariket, the short-run equil brium price of rhenium would be per pound. At that peice, firms in this industry weuief Therefore, in the long run, firms would the rhenium market: Because you know that competitive firms eam cconomic 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 equalitrium. True or Faise: Assuming implici costs are positve, each of the firms operating in this industry in the long run earns positive accounting protit. True Esisch
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