In a perfectly competitive market,the short-run market supply curve is

Question

Quizplus · Accepted Answer

In a perfectly competitive market, individual firms are price takers, i.e., they have no influence over the market price. Therefore, the short-run market supply curve is the horizontal sum of the individual firms' supply curves at each price level, as the market price determines the quantity that each firm is willing to produce and sell. Hence, the correct option is A - the horizontal sum of the supply curves of all the individual firms.

In a Perfectly Competitive Market,the Short-Run Market Supply Curve Is