Graph 14-7 In this graph, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.Use the graph to answer the following question(s).
-Refer to Graph 14-7.If there are 40 identical firms in this market, what level of output will be supplied to the market when the price is $2.00?

Question

Graph 14-7  In this graph, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.Use the graph to answer the following question(s).
-Refer to Graph 14-7.If there are 40 identical firms in this market, what level of output will be supplied to the market when the price is $2.00?

Quizplus · Accepted Answer

At a price of $2.00, each firm supplies 200 units (as seen from the individual firm's supply curve). With 40 identical firms, the total market supply is 40 firms * 200 units/firm = 8000 units.

Graph 14-7 in This Graph, Panel (A) Depicts the Linear