In a market with 1000 identical firms, the market supply is equal to the:

Question

Quizplus · Accepted Answer

In a market with 1000 identical firms, each firm supplies the same quantity of goods at the same price. Therefore, the market supply is the sum of the quantities supplied by each individual firm, which is option B. Option A is incorrect because the average quantity supplied by each firm may not necessarily be equal to the market supply. Option C is incorrect because the marginal cost curve for a representative firm reflects the cost of producing one additional unit and is not equivalent to the market supply. Option D is incorrect because multiplying the quantities supplied by all firms does not result in the market supply unless all firms happen to supply the same quantity.

In a Market with 1000 Identical Firms, the Market Supply