If there are 100 identical firms in the rag industry, and each firm is willing tosupply 10 rags at any price. The curve of the inverse market supply will (choose all correct answers):

Question

BlackTom AI · Accepted Answer

Each firm supplies a fixed 10 rags regardless of price, so total market quantity is 100 × 10 = 1000 rags for any non‑negative price.

1. Relevant knowledge points and concepts
- Market supply is the horizontal aggregation (sum) of individual firms’ supplies: Q_market(P) = Σ Q_i(P).
- If each firm’s supplied quantity does not change with price (Q_i is constant), the market supply is a constant (price‑independent) quantity.
- On a price (vertical) vs. quantity (horizontal) graph, a fixed quantity independent of price is represented by a vertical line at that quantity.

2. Step‑by‑step reasoning
- Each firm supplies 10 rags at any non‑negative price: Q_i(P) = 10 for P ≥ 0.
- There are 100 identical firms, so add their supplies: Q_market(P) = 100 × Q_i(P).
- Substitute Q_i(P) = 10: Q_market(P) = 100 × 10 = 1000 for all P ≥ 0.

3. Intermediate calculation steps
- Per firm: Q_i = 10
- Number of firms: N = 100
- Market quantity: Q_market = N × Q_i = 100 × 10 = 1000

4. Why the correct answers are correct
- "keep Q = 1000 for all non‑negative price" is correct because the aggregated supply is constant at 1000 for any non‑negative price.
- "be a vertical line where Q = 1000" is correct because a constant quantity regardless of price plots as a vertical line at Q = 1000 on the price–quantity axes.

5. Why the other options are incorrect
- "keep Q = 100" is incorrect: that would result if each firm supplied only 1 rag (100 × 1 = 100), but here each supplies 10.
- "be a vertical line where Q = 10" is incorrect: Q = 10 is the per‑firm quantity, not the market total; the market total is 1000.

6. Conclusion
The market supply is Q_market(P) = 1000 for all non‑negative prices and is represented graphically by a vertical line at Q = 1000. This confirms the provided answers.

If there are 100 identical firms in the rag industry, and each firm is willing tosupply 10 rags at any price. The curve of the inverse market supply will (choose all correct answers):Multiple choice

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