In microeconomics, what does a firm's supply schedule show?

• A. The firm's total cost of producing each possible output level
• B. The quantity of a good the firm is willing and able to produce and sell at each possible price, holding other factors constant
• C. The quantity of a good consumers are willing and able to buy at each possible price, holding other factors constant
• D. The market price that will prevail at each possible quantity supplied by all firms in the industry

Answer: (B)

Verified step by step guidance

1. Understand that a firm's supply schedule is a table or function that relates the price of a good to the quantity the firm is willing and able to produce and sell.
2. Recognize that the supply schedule holds other factors constant, such as technology, input prices, and the number of sellers, focusing only on the relationship between price and quantity supplied.
3. Note that the supply schedule differs from a demand schedule, which shows quantities consumers are willing to buy at various prices.
4. Recall that the firm's total cost of production is related to supply decisions but is not what the supply schedule directly shows; instead, it influences the supply curve indirectly.
5. Conclude that the supply schedule specifically shows the quantity of a good the firm is willing and able to produce and sell at each possible price, holding other factors constant.