Question

QUESTION 26 Table: Short-Run Supply Curve Price Quantity $5 15 8 32 10 40 The table above shows three possibly supply points for individual firms in a perfectly competitive market. What point would be on the industry supply curve if there are 100 identical firms? OP = $8,0 - 4,800 O p = $8,0 = 1,500 O p = $10,0 - 4,800 Op=45, Q = 1,500

Answer 1

The Industry Supply Curve is calculated by the horizontal Sum of all the Supplied Quanties at that Price.

Here we can Observe that there are Three Points Given For any Indvidual firm.

Now there are 100 Identical such firms then we can find out the all possible three supplies of the industry.

P = $5 Q=15, Qi = 1500

at this Price we know that there are 100 such firms thus we can sum all the quantities supplied. Hence the industry Supply at this Price will be = 1500

Similarly at P=$8 Q = 32 Then 100 firms will supply Q=3200

at P=$10 , Q=40 for 100 firms: Q = 4000

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only last option is correct.

P=$5 then Q=1500