In the short run,a market consists of 100 identical firms.The market price is $8,and the total cost to each firm of producing various levels of output is given in the table below.What will total quantity supplied be in the market?

Question

Quizplus · Accepted Answer

Each firm will produce the quantity at which marginal cost equals the market price of $8. Looking at the table, this occurs at a quantity of 30 for each firm. Therefore, the total quantity supplied by all 100 firms will be 100 x 30 = 300 units. So, the correct answer is B) 300 units.

In the Short Run,a Market Consists of 100 Identical Firms