A perfectly competitive industry's market supply curve is the sum of the supply curves of all firms in the industry.

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, all firms sell an identical product and have no market power. Therefore, the market supply curve is the horizontal summation of the individual supply curves of all firms in the industry. This means that the quantity supplied at each price is the sum of the quantities supplied by each firm at that price.

A Perfectly Competitive Industry's Market Supply Curve Is the Sum