Miker, a manufacturer of generic medications, is deciding how much to charge retailers for its generic acetaminophen. The marginal cost for each bottle is provided in the accompanying table. If the price of a bottle is $7.75, how many thousand bottles would Miker produce each day? What about if the price is $9 per bottle? Use the Rational Rule for Sellers in Competitive Markets to help explain why the values are different. Finally, draw Miker’s individual supply curve.

Quantity of acetaminophen

(thousand bottles)

Marginal cost (per bottle)

1 $6.00 2 $7.00 3 $7.75 4 $8.25 5 $9.00 6 $9.50 Learning Objective 3.3 Add up individual supply to discover market supply.