Suppose a Perfectly Competitive Industry Has 300 Firms, and the Short-Run

question 15

Multiple Choice

Suppose a perfectly competitive industry has 300 firms, and the short-run supply curve for each firm is given by Q = 2P. What is the short-run industry supply curve?

• A) Q^S = 150P
• B) Q^S = 600
• C) Q^S = 600P
• D) Q^S = 300 + 2P

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Definitions:

Simplify

Making a complex numerical or algebraic expression easier to handle by reducing it to a more basic form.

Square Root Property

A mathematical rule stating that if \(x^2 = a\), then \(x = \pm\sqrt{a}\), which is used to solve quadratic equations.

Equation

A mathematical statement that asserts the equality of two expressions, typically written in the form \(A = B\), where \(A\) and \(B\) are expressions.

Complex Solutions

Solutions to equations that include imaginary numbers, often involving the square root of a negative number.