Use the following to answer question:
-(Table: Cherry Farm)Use Table: Cherry Farm.If Hank and Helen have one of 100 farms in the perfectly competitive cherry industry and if the price is $4,in the short run the industry will supply _____ pounds.

Question

Use the following to answer question: 
-(Table: Cherry Farm)Use Table: Cherry Farm.If Hank and Helen have one of 100 farms in the perfectly competitive cherry industry and if the price is $4,in the short run the industry will supply _____ pounds.

Quizplus · Accepted Answer

In a perfectly competitive market, each firm will supply the quantity where price equals marginal cost. Without specific details from the "Table: Cherry Farm," we assume each farm, including Hank and Helen's, will produce and supply the same quantity. If the price is $4 and assuming this price leads each of the 100 farms to supply 4 pounds (as an example, since the exact supply per farm at $4 is not provided), the total industry supply would be 400 pounds (100 farms * 4 pounds per farm). The correct answer is inferred based on the premise of equal supply contribution from each farm in a perfectly competitive market.

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