Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.The market supply curve is A)QS = -50 + 50P B) $\mathrm { Q } _ { \mathrm { S } } = - \frac { 1 } { 2 } + \frac { 1 } { 2 } \mathrm { P }$ C)QS = -100 + 100P D)QS = -50 + 50q²

Question

Quizplus · Accepted Answer

The market supply curve is derived by summing the individual supply curves of all firms. Each firm's supply curve is determined by setting MC equal to price (P), so 2q + 1 = P, which simplifies to q = (P - 1)/2. With 100 firms, the market supply is QS = 100 * q = 100 * (P - 1)/2 = -50 + 50P.

Suppose There Are 100 Firms Each with a Short Run QS=−12+12P\mathrm { Q } _ { \mathrm { S } } = - \frac { 1 } { 2 } + \frac { 1 } { 2 } \mathrm { P }QS​=−21​+21​P

Suppose There Are 100 Firms Each with a Short Run $\mathrm { Q } _ { \mathrm { S } } = - \frac { 1 } { 2 } + \frac { 1 } { 2 } \mathrm { P }$