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Asked by Grace Dillon on May 31, 2024

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The marginal cost curves of six firms in an industry appear in the table below. If these firms behave competitively, determine the market supply curve. Calculate the elasticity of market supply at $5.
The marginal cost curves of six firms in an industry appear in the table below. If these firms behave competitively, determine the market supply curve. Calculate the elasticity of market supply at $5.

Elasticity of Market Supply

An indicator of the extent to which the supply of a product varies following a price adjustment.

Marginal Cost Curves

A graphical representation that shows how the cost of producing one more unit of a good or service varies as production increases.

Market Supply Curve

A graphical representation showing the total quantity of a good or service that suppliers are willing and able to sell at different prices.

  • Attain insight into the association between marginal cost, average variable cost, fixed costs, and their significance concerning short-run supply curves.
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Zybrea KnightJun 03, 2024
Final Answer :
To determine each firm's individual supply, we need to solve for q when marginal cost is set equal to the market price. To determine each firm's individual supply, we need to solve for q when marginal cost is set equal to the market price. We can then add each firm's individual supply together at each price to determine the market supply. This is done in the following table: The market supply is the sum of all the firms' quantity supplied at each price. As the table indicates, the market supply is: At a price of $5, the quantity supplied is 6. So, the point elasticity of supply at $5 is: We can then add each firm's individual supply together at each price to determine the market supply. This is done in the following table:
To determine each firm's individual supply, we need to solve for q when marginal cost is set equal to the market price. We can then add each firm's individual supply together at each price to determine the market supply. This is done in the following table: The market supply is the sum of all the firms' quantity supplied at each price. As the table indicates, the market supply is: At a price of $5, the quantity supplied is 6. So, the point elasticity of supply at $5 is: The market supply is the sum of all the firms' quantity supplied at each price. As the table indicates, the market supply is: To determine each firm's individual supply, we need to solve for q when marginal cost is set equal to the market price. We can then add each firm's individual supply together at each price to determine the market supply. This is done in the following table: The market supply is the sum of all the firms' quantity supplied at each price. As the table indicates, the market supply is: At a price of $5, the quantity supplied is 6. So, the point elasticity of supply at $5 is: At a price of $5, the quantity supplied is 6. So, the point elasticity of supply at $5 is: To determine each firm's individual supply, we need to solve for q when marginal cost is set equal to the market price. We can then add each firm's individual supply together at each price to determine the market supply. This is done in the following table: The market supply is the sum of all the firms' quantity supplied at each price. As the table indicates, the market supply is: At a price of $5, the quantity supplied is 6. So, the point elasticity of supply at $5 is:

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