Question

In a perfectly competitive market with 50 firms, output is zero at prices less than $20. At prices of $20 to $29.99, each firm will produce 1 unit of output. At any price of $30 or more, each firm will produce 3 units of output. At a price of $27, the industry produces _____ units, and at a price of $35, the industry produces _____units.

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

In a perfectly competitive market with 50 firms, output is zero at prices less than $20.

At prices of $20 to $29.99, each firm will produce 1 unit of output.

At a price of $27, the industry produces 50*1= 50 units.

At any price of $30 or more, each firm will produce 3 units of output.

At a price of $35, the industry produces 50*3= 150 units.