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 100 identical firms in this market, what is the value of Q2?
A)10,000
B)20,000
C)40,000
D)80,000

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 100 identical firms in this market, what is the value of Q2?
A)10,000 
B)20,000 
C)40,000 
D)80,000

Quizplus · Accepted Answer

If there are 100 identical firms, the total market quantity (Q2) is the quantity produced by one firm multiplied by the number of firms. Assuming each firm produces 200 units (from the context of the figure), Q2 would be 100 firms * 200 units = 20,000 units.