In a perfectly competitive industry, there are 10 firms, each with an MC curve that can be expressed as follows: MC = 5q, where q is the level of output for each firm.The minimum point of the AVC curve is $5.Which of the following equations would describe the industry supply curve for the industry, where Q is the market quantity and P is the market price?
A.P = Q for Q ≥ 10
B.P = 0.5Q for Q ≥ 10
C.P = 2Q for Q ≥ 10
D.P = Q for Q ≥ 20

Question

Quizplus · Accepted Answer

The Answer of In a perfectly competitive industry, there are 10 firms, each with an MC curve that can be expressed as follows: MC = 5q, where q is the level of output for each firm.The minimum point of the AVC curve is $5.Which of the following equations would describe the industry supply curve for the industry, where Q is the market quantity and P is the market price?
A.P = Q for Q ≥ 10
B.P = 0.5Q for Q ≥ 10
C.P = 2Q for Q ≥ 10
D.P = Q for Q ≥ 20

In a Perfectly Competitive Industry, There Are 10 Firms, Each