Figure 14-11
-Refer to Figure 14-11. The figure above is for a firm operating in a competitive industry. If there were eight identical firms in the industry, which of the following price-quantity combinations would be on the market supply curve?
Point
Price
Quantity
A
$4
4
B
$4
32
C
$6
6
D
$8
64
A)A only
B)A and C only
C)B only
D)B and D only

Question

Figure 14-11 
-Refer to Figure 14-11. The figure above is for a firm operating in a competitive industry. If there were eight identical firms in the industry, which of the following price-quantity combinations would be on the market supply curve?
Point
Price
Quantity
A
$4
4
B
$4
32
C
$6
6
D
$8
64
A)A only 
B)A and C only 
C)B only 
D)B and D only

Quizplus · Accepted Answer

If there are eight identical firms, the market supply at a given price is the sum of the quantities supplied by each firm. At price $4, each firm supplies 4 units, so 8 firms supply 32 units (Point B). At price $8, each firm supplies 8 units, so 8 firms supply 64 units (Point D).

Figure 14-11 -Refer to Figure 14-11. the Figure Above Is for a Is