A perfectly competitive industry consists of 50 East Coast firms and 80 West Coast firms. Each of the East Coast firms has a short-run supply curve of Q_E = 20P, and each of the West Coast firms has a short-run supply curve of Q_W = 30P.
a. Which firms are the low-cost producers?
b. Determine the industry supply curve.
c. If the market price is $10, what is the industry's producer surplus?

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The Answer of A perfectly competitive industry consists of 50 East Coast firms and 80 West Coast firms. Each of the East Coast firms has a short-run supply curve of Q_E = 20P, and each of the West Coast firms has a short-run supply curve of Q_W = 30P. a. Which firms are the low-cost producers? b. Determine the industry supply curve. c. If the market price is $10, what is the industry's producer surplus?

A Perfectly Competitive Industry Consists of 50 East Coast Firms