Figure 14-9

question 461

Multiple Choice

Figure 14-9
In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.
-Refer to Figure 14-9. If there are 100 identical firms in this market, what is the value of Q2?

• A)10,000
• B)20,000
• C)40,000
• D)80,000

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Definitions:

Nonrival Consumption

A characteristic of certain goods where the consumption by one individual does not reduce availability to others, typical of public goods.

Nonexcludable

A characteristic of a good or service that does not allow the provider to prevent its use by individuals who have not paid for it.

Police Officers

Law enforcement personnel responsible for maintaining public order, preventing and detecting crime, and enforcing laws.

Marginal Cost

The cost of producing one additional unit of a good or service, crucial for optimizing production levels and pricing strategies.