This table shows price and quantity produced for a single firm in a perfectly competitive market. Given the information in the table shown,what is the market price?

Question

This table shows price and quantity produced for a single firm in a perfectly competitive market.  Given the information in the table shown,what is the market price?

Quizplus · Accepted Answer

In a perfectly competitive market, the market price is determined by the intersection of the market supply and demand curves. The table shows the quantity produced by a single firm at different price levels. To find the market price, we need to look at the total quantity supplied and demanded in the market. From the table, we can see that at a price of $10, the total quantity supplied by all firms is equal to the total quantity demanded by all consumers (Qs=Qd=26). Therefore, the market price is $10.

This Table Shows Price and Quantity Produced for a Single