Considerthe following firm-levelsupply schedule for oranges:
q = f(P) = 2P – 2, where P= themarket price of oranges.
a. Ifthere are 10 identicalfirmsin themarket,then whatisthe equation forthemarketsupply
schedule (Q)? Find the derivative ofmarketsupply with respectto price when there are 10
firms.(5 points)
b. Suppose there areNfirmsin themarket. Whatisthe equation formarketsupply? Find the
partial derivative ofmarketsupply with respectto price. Verify thatthis equation isthe same
as above whenN=10.(5 points)
c. Sketch themarketsupply schedule in a diagramwhenN=10; be sure to identify the vertical
intercept and the slope ofthe supply schedule in your diagram(HINT:mind your P’s andQ’s!).