Use the following to answer questions : $$\begin{array}{l}
\text { Table: Cherry Farm }\
\begin{array} { c c }
\hline \begin{array} { l }
\text { Quantity of } \
\text { cherries } \
\text { (in pounds) }
\end{array} & \text { Total Cost } \
\hline 0 & \$ 2 \
1 & 7 \
2 & 11 \
3 & 13 \
4 & 16 \
5 & 21 \
6 & 28 \
7 & 38 \
\hline
\end{array}
\end{array}$$
-(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Cherry Farm }\
\begin{array} { c c } 
\hline \begin{array} { l } 
\text { Quantity of } \
\text { cherries } \
\text { (in pounds) }
\end{array} & \text { Total Cost } \
\hline 0 & \$ 2 \
1 & 7 \
2 & 11 \
3 & 13 \
4 & 16 \
5 & 21 \
6 & 28 \
7 & 38 \
\hline
\end{array}
\end{array}$$
-(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

Quizplus · Accepted Answer

The industry short-run supply curve is the horizontal sum of the individual farm supply curves. Each farm's supply curve is a vertical line at the minimum average variable cost. In this case, the minimum average variable cost is $4 per pound. Therefore, the industry short-run supply curve is a horizontal line at $4 per pound. The point that falls on the industry short-run supply curve is the point where the quantity supplied is 400 kilograms.

Use the Following to Answer Questions -(Table: Cherry Farm)Use Table: Cherry Farm