$D _ { M }$ represents market demand, $S _ { F }$ represents the fringe supply curve, $D _ { R }$ represents the dominant firm's residual demand curve, $M R _ { R }$ represents the dominant firm's marginal revenue curve, and $M C$ represents the dominant firm's marginal cost curve.

-Consider the information above. In equilibrium, how many units will the fringe producers supply?
A)45 units
B)60 units
C)90 units
D)135 units

Question

$D _ { M }$ represents market demand, $S _ { F }$ represents the fringe supply curve, $D _ { R }$ represents the dominant firm's residual demand curve, $M R _ { R }$ represents the dominant firm's marginal revenue curve, and $M C$ represents the dominant firm's marginal cost curve.

-Consider the information above. In equilibrium, how many units will the fringe producers supply?
A)45 units 
B)60 units 
C)90 units 
D)135 units

Quizplus · Accepted Answer

In equilibrium, the fringe producers will supply 45 units because the price is equal to their marginal cost.

DMD _ { M }DM​ Represents Market Demand SFS _ { F }SF​

$D _ { M }$ Represents Market Demand $S _ { F }$