Consider the table below showing the supply schedules for three competitive firms, each producing honey. These three firms make up the entire industry.

a. Compute the total industry supply at each price and fill in the table.
b. On a scale diagram similar to Figure 9-6 on page 211, plot the supply curve for each firm and for the industry as a whole.
c. Can you provide a likely explanation for why Firm B produces no output at prices $3 and lower, and why Firm C produces no output at prices $4 and lower?

Transcribed Image Text:

Market Price Output (kg) S/kg) Firm A Firm B Firm C Industry 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 100 125 150 100 175 200200 100 225 250 175 250 300 250 275 150 350 325