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Class 12
Micro Economics
The Theory of the Firm under Perfect Competition
consider a market with two firms the following ta...

Question:
Consider a market with two firms. The following table shows the supply schedules of the two firms: the SS₁ column gives the supply schedule of firm 1 and the SS₂ column gives the supply schedule of firm 2. Compute the market supply schedule.

Price (Rs.) SS₁ (units) SS₂ (units)

0
1
2
3
4
5
6 0
0
0
1
2
3
4 0
0
0
1
2
3
4

Price (Rs.)	SS₁ (units)	SS₂ (units)
0 1 2 3 4 5 6	0 0 0 1 2 3 4	0 0 0 1 2 3 4

Answer:

Price SS₁
(unit) SS₂
(unit) Market Supply
= SS₁+SS₂

0 0 0 0 + 0 = 0

1 0 0 0 + 0 = 0

2 0 0 0 + 0 = 0

3 1 1 1 + 1 = 2

4 2 2 2 + 2 = 4

5 3 3 3 + 3 = 6

6 4 4 4 + 4 = 8

Price	SS₁ (unit)	SS₂ (unit)	Market Supply = SS₁+SS₂
0	0	0	0 + 0 = 0
1	0	0	0 + 0 = 0
2	0	0	0 + 0 = 0
3	1	1	1 + 1 = 2
4	2	2	2 + 2 = 4
5	3	3	3 + 3 = 6
6	4	4	4 + 4 = 8

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