Homework Answers
Answer : 1) Based on given information,
At market price P the total market supply of 5 firms is,
P = 100 + 100Qi
At market price P the market supply of 6th firm is,
P = 20 + 20Q6
So, at market price P the total market supply of 6 firms is,
P = (100 + 100Qi) + (20 + 20Q6) = 100 + 100Qi + 20 + 20Q6
=> P = 120 + 120Q
Here Q = Total market supply of 6 firms.
Therefore, the equation of market supply curve is, P = 120 + 120Q.
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