The following table gives the average cost of production for three different categories of firms producing the same product.
-Refer to Table .Suppose initially 3,200 units are demanded at a price of $3 per unit.What will be the quantity of output supplied by each type of firm in the market?
A) Type A and Type B will jointly supply 3,000 units while Type C will supply 200 units.
B) Type A firms will supply 3,000 units, while the remaining 200 units will be supplied by Type B.
C) Type A firms will supply the entire 3,200 units, while Type B and Type C firms will not enter the market.
D) Type A and Type B will each supply 1,600 units, Type C will not enter the market.
Correct Answer:
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