In the short run for a particular market, there are 300 firms. Each firm has a marginal cost of $30 when it produces 200 units of output. $30 is above every firm's average variable cost. One point on the market supply curve is
A)quantity = 300; price = $30.
B)quantity = 600,000; price = $90,000.
C)quantity = 100,000; price = $30.
D)quantity = 60,000; price = $30.

Question

Quizplus · Accepted Answer

In the short run, the market supply curve is the horizontal sum of all individual firms' supply curves. Each firm produces 200 units at a marginal cost of $30, so 300 firms produce 60,000 units in total at this price.

In the Short Run for a Particular Market, There Are