Demand:
Market supply: firms sum their marginal costs at the equalized price Units of X per Day Price and Costs ($) Each point on the market supply curve = firms producing at equalized marginal cost. MCC MCB MCA (idle at $20) Dlow Dhigh demand rises Market Supply B enters $18 C enters $28 XB 12 XA 18 XA+B+C 44 XA+B 30 Price $20. Firms A and B produce; C sits idle — its cost floor is $28. Add the firms’ quantities at $20 → market supply of 30 units.