To Find the Quantity Supplied by the Industry, Add the Quantities Supplied by Each Firm in the Industry At any price below $17, profits for both Firm 1 and Firm 2 are negative so industry output is 0. At a price of $17, Firm 1 enters the industry with a profit-maximizing quantity of 4 barrels so industry output jumps to 4 barrels. As price rises further, Firm 1 expands along its MC curve. At a price of $29, Firm 2 enters the industry with a profit-maximizing quantity of 5 barrels so total industry output is 11 barrels (6 from Firm 1 and 5 from Firm 2). As price rises further, both firms expand along their marginal cost curve. At any price, industry output is the sum of each firm’s output. At a price of $50, what quantity does Firm 1 produce? What quantity does Firm 2 produce? Fill in the table and check that the production from Firm 1 and Firm 2 add up to industry output.