Question

There are three identical firms in the market. The following table shows the supply schedule of a firm :

Price (₹)	Supply (Units)
0	0
1	1
2	2
3	4
4	6
5	8
6	10

(1) Define market supply 

(2) Compute market supply schedule 

(3) Draw market supply curve

Answer 1

(1) The output level that firms in the market produce in aggregate, corresponding to different values of market prices. 

(2) 

Price	Supply(1)	Supply(2)	Supply(3)	Market Supply
0	0	0	0	0
1	1	1	1	3
2	2	2	2	6
3	4	4	4	12
4	6	6	6	18
5	8	8	8	24
6	10	10	10	30

(3) Draw a market supply curve that slopes upwards corresponding to the above values.