Advertisements
Advertisements
Question
There are three identical firms in a market. The following table shows the supply schedule of firm 1. Calculate the market supply schedule.
|
Price (Rs ) |
SS1 (units) |
|
0 |
0 |
|
1 |
0 |
|
2 |
2 |
|
3 |
4 |
|
4 |
6 |
|
5 |
8 |
|
6 |
10 |
|
7 |
12 |
|
8 |
14 |
Sum
Advertisements
Solution
As all the three firms are identical, so they have same individual supply curve and therefore the market supply will be the summation of supplies of all three firms.
|
Price (Rs.) |
SS1 (units) |
SS2 (units) |
SS3 (units) |
Market Supply = SS1 + SS2 + SS2 |
|
0 |
0 |
0 |
0 |
0 |
|
1 |
0 |
0 |
0 |
0 |
|
2 |
2 |
2 |
2 |
6 |
|
3 |
4 |
4 |
4 |
12 |
|
4 |
6 |
6 |
6 |
18 |
|
5 |
8 |
8 |
8 |
24 |
|
6 |
10 |
10 |
10 |
30 |
|
7 |
12 |
12 |
12 |
36 |
|
8 |
14 |
14 |
14 |
42 |
shaalaa.com
Is there an error in this question or solution?
