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 600 identical firms in this market, what is the value of Q1?
A)6,000
B)12,000
C)60,000
D)120,000

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 600 identical firms in this market, what is the value of Q1?
A)6,000 
B)12,000 
C)60,000 
D)120,000

Quizplus · Accepted Answer

If there are 600 identical firms, and each firm produces the same quantity, the total market quantity (Q1) is the quantity produced by one firm multiplied by the number of firms. Assuming each firm produces 100 units (as inferred from the context), 600 firms would produce 60,000 units in total.