Asked by Alyssa Noriega on Jun 27, 2024
Verified
The supply curve found by taking the horizontal summation of the short-run supply curves of all of the firms in a perfectly competitive industry is called the _____ curve.
A) marginal cost
B) short-run market supply
C) interim market supply
D) competitive
Short-Run Market Supply
The total quantity of a good or service that producers are willing and able to sell at various prices over a short period, where some production factors are fixed.
- Ascertain and clarify the significance of the industry supply curve in relation to perfect competition.
Verified Answer
HG
Harman Garcha
Jun 30, 2024
Final Answer :
B
Explanation :
This is because the short-run market supply curve represents the quantity of output that all firms in the industry are willing and able to produce at each price level in the short run, and taking their horizontal summation gives the market supply curve. Choices A, C, and D are incorrect because they do not accurately describe the supply curve that is found in a perfectly competitive industry.
Learning Objectives
- Ascertain and clarify the significance of the industry supply curve in relation to perfect competition.
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