Figure 14-8
In the figure below,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.
-Refer to Figure 14-8.When 100 identical firms participate in this market,at what price will 15,000 units be supplied to this market?

Question

Figure 14-8
In the figure below,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.  
-Refer to Figure 14-8.When 100 identical firms participate in this market,at what price will 15,000 units be supplied to this market?

Quizplus · Accepted Answer

At 15,000 units of output, the market supply curve crosses the linear marginal cost curve at a price of $1.50. Therefore, the price at which 15,000 units will be supplied is $1.50.