There are currently N identical firms in a market.If it is a perfectly competitive market,the short-run market supply curve at any given price is
A) N times the supply of an individual firm.
B) N - 1 times the supply of an individual firm.
C) N plus the supply of an individual firm.
D) It cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all firms are price takers, meaning they cannot influence the market price. Therefore, the market supply is simply the sum of the supply of all individual firms. Since there are N identical firms, the short-run market supply at any given price would be N times the supply of an individual firm.

There Are Currently N Identical Firms in a Market