Consider the market for tilapia. Ripple Rock Fish Farms, a small family fish farm in Ohio, and The Fishin’ Company, a large corporate supplier, are both producers of tilapia.

The marginal cost curves for both firms are shown in the accompanying graph.

If the market price is $2.25 pound of tilapia, how many pounds of tilapia would Ripple Rock supply? What about The Fishin’ Company? How many total pounds would they collectively supply? Is this allocation the most productively efficient way to produce this quantity of tilapia?

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Marginal cost ($ per pound) $2.25 Ripple Rock's marginal cost The Fishin' Company's marginal cost 200 300 400 500 600 700 800 Quantity (thousands of pounds) Stevenson/Wolfers, Principles of Economics, 1e, 2020 worth Publishers