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Question
There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.
| Price (₹ per unit): | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Supply (units): | 0 | 0 | 2 | 4 | 6 | 8 | 10 | 12 | 14 |
Solution
| Price (in ₹) | I | II | III | I + II + III |
| 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 |
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RELATED QUESTIONS
Derive the market supply from the market supply schedule of two firms A and B.
| Price | Firm A | Firm B | Ms |
| 2 | 10 | 7 | ? |
| 3 | 12 | 8 | ? |
| 4 | 14 | 9 | ? |
| 5 | 16 | 11 | ? |
| 6 | 18 | 13 | ? |
What are the values of (i), (ii) and (iii). Assume that there are only 3 firms in the market.
| Price (in ₹) | Firm A (units) | Firm B (units) | Firm C (units) | Market supply (units) |
| 10 | 0 | 25 | 10 | 35 |
| 20 | 10 | 30 | (ii) | 60 |
| 30 | (i) | 35 | 25 | 80 |
| 40 | 30 | 40 | 40 | (iii) |
| 50 | 40 | 45 | 50 | 135 |
The given supply schedule represents ______.
| Price (₹) | 20 | 20 |
| Supply (Units) | 100 | 120 |
What are the values of (i) and (ii)
Market Supply Schedule (Supposing that there are only 2 firms - A and B in the market)
| Price (₹) | Quantity Supplied | ||
| By A | By B | Market | |
| 4 | 10,000 | 6,000 | (ii) ______ |
| 5 | 12,000 | 10,000 | 22,000 |
| 6 | 15,000 | (i) ______ | 30,000 |
| 7 | 18,000 | 20,000 | 38,000 |
| 8 | 20,000 | 25,000 | 45,000 |
Construct an imaginary individual supply schedule. Draw an individual supply curve based on an imaginary individual supply schedule.
Derive market supply schedule and curve from the following hypothetical individual supply schedules of two firms A and B.
| Price | SA | SB |
| 2 | 10 | 7 |
| 3 | 12 | 8 |
| 4 | 14 | 9 |
How is a market supply schedule attained from individual supply schedules of a commodity?
What is a supply schedule?
What is market supply?
With the help of a hypothetical supply schedule, draw a supply curve.
