The first table shows cost data for a single firm. Now suppose that there are 600 identical firms in this industry, each with the same cost data. Suppose, too, that the demand curve for this industry is as shown in the second table. When the market is in equilibrium, each of the firms will be producing
A)5 units.
B)6 units.
C)7 units.
D)9 units.

Question

The first table shows cost data for a single firm. Now suppose that there are 600 identical firms in this industry, each with the same cost data. Suppose, too, that the demand curve for this industry is as shown in the second table.  When the market is in equilibrium, each of the firms will be producing
A)5 units. 
B)6 units. 
C)7 units. 
D)9 units.

Quizplus · Accepted Answer

The Answer of  The first table shows cost data for a single firm. Now suppose that there are 600 identical firms in this industry, each with the same cost data. Suppose, too, that the demand curve for this industry is as shown in the second table.  When the market is in equilibrium, each of the firms will be producing
A)5 units. 
B)6 units. 
C)7 units. 
D)9 units.

The First Table Shows Cost Data for a Single Firm