In a perfectly competitive market with 50 firms, output is zero at prices less than $20. At prices of $20 to $29.99, each firm will produce 1 unit of output. At any price of $30 or more, each firm will produce 3 units of output. At a price of $27, the industry produces _____ units, and at a price of $35, the industry produces _____units.

Question

Quizplus · Accepted Answer

At a price of $27, each of the 50 firms produces 1 unit of output, totaling 50 units. At a price of $35, each firm produces 3 units of output, for a total of 150 units (50 firms * 3 units each).

In a Perfectly Competitive Market with 50 Firms, Output Is