Price, P (€); cost 5 4 2 1 O 0 T 40 Firm supply (marginal cost) 80 120 160 Quantity of loaves, Q 200 Price, P (€); cost 5 4 3 N 1 0+ 0 Market supply (marginal cost) 2,000 4,000 6,000 8,000 10,000 Quantity of loaves, Q
Price, P (€); cost 5 4 2 1 O 0 T 40 Firm supply (marginal cost) 80 120 160 Quantity of loaves, Q 200 Price, P (€); cost 5 4 3 N 1 0+ 0 Market supply (marginal cost) 2,000 4,000 6,000 8,000 10,000 Quantity of loaves, Q
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The firm supply and the market supply of bread are shown in the diagram. Which of the following statements about the diagram is incorrect?
Select one:
a. There is a close relationship between the firm supply and the market supply.
b. The market supply illustrates the total amount supplied by all firms in the market at each
c. The market supply curve shows the relationship between the price and the amount supplied, ceteris paribus.
d. If the price increases, more firms supply bread.
e. If the price is 1.5, the amount supplied by a firm is 60.
Transcribed Image Text:Price, P (€); cost
4
N
1
0
0
T
40
Firm supply
(marginal cost)
80 120 160
Quantity of loaves, Q
200
Price, P (€); cost
S
4
3
2
1
0
Market supply
(marginal cost)
2,000 4,000 6,000 8,000 10,000
Quantity of loaves, Q
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