firm supply curves\nprice quantity- firm 1 quantity- firm 2\n$1 1,000 4,000\n$2 1,350 4,350\n$3 1,700…

firm supply curves\nprice quantity- firm 1 quantity- firm 2\n$1 1,000 4,000\n$2 1,350 4,350\n$3 1,700 4,700\n$4 2,050 5,050\n$5 2,400 5,400\n$6 2,750 5,750\n$7 3,100 6,100\n$8 3,450 6,450\na. a third firm would mean,\no higher prices of stuffed animals.\no firm 1 and firm 2 would lower output to accommodate the new supplier in order to keep market supply constant.\no market supply decreases.\no market supply increases.\nb. with two firms in the market, the market quantity supplied at $6 is:\nstuffed animals

firm supply curves\nprice quantity- firm 1 quantity- firm 2\n$1 1,000 4,000\n$2 1,350 4,350\n$3 1,700 4,700\n$4 2,050 5,050\n$5 2,400 5,400\n$6 2,750 5,750\n$7 3,100 6,100\n$8 3,450 6,450\na. a third firm would mean,\no higher prices of stuffed animals.\no firm 1 and firm 2 would lower output to accommodate the new supplier in order to keep market supply constant.\no market supply decreases.\no market supply increases.\nb. with two firms in the market, the market quantity supplied at $6 is:\nstuffed animals

Answer

Explanation:

Step1: Analyze impact of new firm

In a market, more firms generally increase supply. So when a third firm enters, market supply increases.

Step2: Calculate market - quantity supplied at $6

From the table, at a price of $6, Firm 1 supplies 2,750 and Firm 2 supplies 5,750. Add these quantities together. $2750 + 5750=8500$

Answer:

a. market supply increases. b. 8500