A Competitive Market Is Made Up of 100 Identical Firms

question 4

Essay

A competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows:
MC = 5 + 0.5Q,
where Q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a vertical distance of 10 above the horizontal axis. Determine the market short-run supply curve. Calculate the price that would make 2,000 units forthcoming per time period. Note the minimum price at which any quantity would be placed on the market.

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Definitions:

Silent Authority

A form of power or influence exerted through presence or reputation rather than explicit verbal commands.

Assertiveness

The quality of being self-assured and confident without being aggressive, important for clear and effective communication.

Exchange

The act of giving one thing and receiving another, especially of the same type or value, often used in the context of social or economic transactions.

Actions Affect

refers to the impact that an individual's actions have on their feelings and emotions.