For Questions 5, 6, and 7 consider a market with a large number of firms, an upward sloping supply curve S₀, and a downward sloping demand curve D₀. In Question 5, we will start with the assumption that the market is perfectly competitive; hence, the supply curve S₀ is the sum of the marginal cost curves of all the firms. Here is a representation of that market.

Graphs are required as part of your analysis for Questions 5 and 6. For Question 7, a graph is not required