Figure 14-10

question 187

Multiple Choice

Figure 14-10
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 14-10. If there are 500 identical firms in this market, what is the value of Q1?

• A)10,000
• B)20,000
• C)50,000
• D)150,000

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Definitions:

Pays Wages

The process by which employers compensate their employees for work performed, typically in the form of monetary payment.

Employer

An individual or entity that hires and pays people to work on their behalf, often to produce goods or provide services.

Mixed

A type of economic system combining elements of both capitalism and socialism, featuring a blend of private and public ownership.

Command

A directive or an instruction, often used in the context of command economies where the government directs economic activity.