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 30 identical firms in this market, what level of output will be supplied to the market when price is $1.00?

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 30 identical firms in this market, what level of output will be supplied to the market when price is $1.00?

Quizplus · Accepted Answer

At a price of $1.00, each individual firm's supply will be equal to their marginal cost, which is $1.00 at the quantity of 100. With 30 identical firms in the market, the market supply will be equal to the sum of the quantities supplied by each firm at that price, which is 3,000 (30 x 100).