If Four Firms Constituting a Competitive Industry Have the Supply

question 28

Multiple Choice

If four firms constituting a competitive industry have the supply schedules given below, then their combined market supply may be stated as: Q_l ^s= 16 + 4P Q₃ ^s= 32 + 8P
Q₂ ^s= 5 + 5P Q₄ ^s= 60 + 10P

• A)Q = 113 - 27P.
• B)Q = 113 + 27P.
• C)Q = 51 + 4P.
• D)Q = 92 + 18P.
• E)none of the above.

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Definitions:

Manufacturer

A person or company that makes goods for sale through the process of combining raw materials and components.

Net Operating Income

The profit generated from a company's regular business operations, excluding expenses and revenues from non-operating activities.

Monthly Sales

Monthly sales represent the total revenue or units sold by a business within a calendar month, often used to gauge performance and trends.

Operating Leverage

A measure of the proportion of fixed costs in a company's cost structure, indicating how a change in sales volume will affect operating income.