Use the following to answer question:
-(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

Question

Use the following to answer question: 
-(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

Quizplus · Accepted Answer

The industry short-run supply curve can be found by horizontally summing the individual firm's supply curves. The point at which the 100th firm enters (i.e. the point at which the quantity supplied reaches 20,000 pounds) will be the point on the industry supply curve. This occurs at a price of $4.40 per pound, so the answer is C.

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