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Question
Consider a market with two firms. The following table shows supply schedules of two firms: SS1 denotes the supply schedule of firm 1 and SS2 denotes the supply schedule of firm 2. Calculate the market supply schedule.
|
Price (Rs ) |
SS1 (units) |
SS2 (units) |
|
0 |
0 |
0 |
|
1 |
0 |
0 |
|
2 |
0 |
0 |
|
3 |
1 |
1 |
|
4 |
2 |
2 |
|
5 |
3 |
3 |
|
6 |
4 |
4 |
Sum
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Solution
|
Price (Rs ) |
SS1 (units) |
SS2 (units) |
Market Supply = SS1 + SS2 |
|
0 |
0 |
0 |
0 + 0 = 0 |
|
1 |
0 |
0 |
0 + 0 = 0 |
|
2 |
0 |
0 |
0 + 0 = 0 |
|
3 |
1 |
1 |
1 + 1 = 2 |
|
4 |
2 |
2 |
2 + 2 = 4 |
|
5 |
3 |
3 |
3 + 3 = 6 |
|
6 |
4 |
4 |
4 + 4 = 8 |
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