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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 |
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 |
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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 |
Consider a market with two firms. In the following table, columns labelled as SS1 and SS2 give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.
|
Price (Rs ) |
SS1 (kg) |
SS2 (kg) |
|
0 |
0 |
0 |
|
1 |
0 |
0 |
|
2 |
0 |
0 |
|
3 |
1 |
0 |
|
4 |
2 |
0.5 |
|
5 |
3 |
1 |
|
6 |
4 |
1.5 |
|
7 |
5 |
2 |
|
8 |
6 |
2.5 |
