Firm 1 Low Cost
Firm 2 Medium Cost
Market Supply ΣQ at each P
📈 Market Price
Price (P) $15.00
Quantity Supplied at P = $15.00
Firm 1 (q₁) 8.2
Firm 2 (q₂) 6.5
× 10 firms each
Market QS 147
Market Structure
# of Type-1 Firms 10
# of Type-2 Firms 10
QS = n₁·q₁(P) + n₂·q₂(P)
Firm 1 - Low Cost Producer
MC intercept (a₁) $2.00
MC curvature (c₁) 0.015
Firm 2 - Higher Cost Producer
MC intercept (a₂) $5.00
MC curvature (c₂) 0.025
Legend
Price / MR
Firm 1 MC / Supply
Firm 2 MC / Supply
Market Supply (ΣMC)
Firm's optimal q