(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) $5,100 pounds
B) $4,200 pounds
C) $4,400 pounds
D) $2,500 pounds

Question

Bigfoot VIB3Z · Accepted Answer

Final Answer : C, Explanation :  The industry short-run supply curve can be found by horizontally summing the individual firm's supply curves. The point at which the 100th firm enters (i.e. the point at which the quantity supplied reaches 20,000 pounds) will be the point on the industry supply curve. This occurs at a price of $4.40 per pound, so the answer is C.

(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) $5,100 pounds
B) $4,200 pounds
C) $4,400 pounds
D) $2,500 pounds

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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) $5,100 poundsB) $4,200 poundsC) $4,400 poundsD) $2,500 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) $5,100 pounds
B) $4,200 pounds
C) $4,400 pounds
D) $2,500 pounds