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Figure: Two-Firm Industry
-(Figure: Two-Firm Industry) Refer to the figures. At a market price of $25, the total quantity supplied in the industry is:
A) 32 units.
B) 45 units.
C) 15 units.
D) 25 units.

Question

Use the following to answer questions:
Figure: Two-Firm Industry 
-(Figure: Two-Firm Industry) Refer to the figures. At a market price of $25, the total quantity supplied in the industry is:
A) 32 units. 
B) 45 units. 
C) 15 units. 
D) 25 units.

Quizplus · Accepted Answer

At a market price of $25, each firm will produce 22.5 units (where MC=MR). Thus, the total quantity supplied in the industry will be 45 units (22.5 units per firm x 2 firms).

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