Short-run supply and long-run equilibrium

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If there were 60 firms in this market, the short-run equilibrium price of titanium would beper 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 beper 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: Each of the firms operating in this industry in the long run earns negative accounting profit.

True

False

Reference no: EM13898712

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