There are 200 firms in a perfectly competitive industry. Half of the firms supply 100 units at $3 per unit and the other half of the firms supply 130 units at $3 per unit. One point on the market supply curve is

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Quizplus · Accepted Answer

The total market supply is calculated by adding the supply from both groups of firms: (100 units * 100 firms) + (130 units * 100 firms) = 23,000 units at $3.

There Are 200 Firms in a Perfectly Competitive Industry