... to $1, 102.50 in a further year so the contract is for $1, 102.50 note: $1, 102.50 = $1, 000 x 1. 05 x 1. 05 = $1, 000 x 1. 052 • More generally – a loan of Y for years at interest rate r grows to Y (1. .. D and market and marketsupply supplySS 111 (a) The Firm (b) The Industry and market SS1P • Price falls and marketsupply supply equilibrium price With 1P equilibrium priceisis Withmarket marketprice... Example 1: Three firms Firm Firm Firm Firm 1: qMC = MC/4 = 4q +- 82 q1+q2+q3 Firm 2: qMC = MC/2 = 2q +- 84 Firm 3: qMC = MC/6 = 6q +- 84/3 Invert these Aggregate: Q= q1+q2+q3 = 11 MC /12 - 22/3 MC = 12 Q /11