Figure 14-9
In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.
-Refer to Figure 14-9. If there are 300 identical firms in this market, what level of output will be supplied to the market when price is $1.00?
A)300
B)6,000
C)30,000
D)60,000

Question

Figure 14-9
In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.  
-Refer to Figure 14-9. If there are 300 identical firms in this market, what level of output will be supplied to the market when price is $1.00?
A)300 
B)6,000 
C)30,000 
D)60,000

Quizplus · Accepted Answer

From panel (b), we can see that at a market price of $1.00, the total quantity supplied by the 300 identical firms is 30,000 (by finding the intersection of the price line and the market supply curve). Therefore, the answer is C.