(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

A) $2,300 pounds
B) $11,200 pounds
C) $3,500 pounds
D) $8,600 pounds

Question

Irabaruta Nay-deen · Accepted Answer

Final Answer : D, Explanation :  The industry short-run supply curve is the horizontal summation of the individual firm supply curves. At a market price of $1.50 per pound, each firm will produce the quantity where marginal cost equals price. In this case, that is at a quantity of 8,600 pounds, which is the output level at which the marginal cost is $1.50. Thus, D is the correct choice.

(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

A) $2,300 pounds
B) $11,200 pounds
C) $3,500 pounds
D) $8,600 pounds

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Learning Objectives

Learning Objectives

Related questions

(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?A) $2,300 poundsB) $11,200 poundsC) $3,500 poundsD) $8,600 pounds

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.Which point would fall on the industry short-run supply curve?

A) $2,300 pounds
B) $11,200 pounds
C) $3,500 pounds
D) $8,600 pounds