The basic difference between the market supply curve of an input and the supply curve of an input to a single perfectly competitive firm is that

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The input supply curve for a single perfectly competitive firm is perfectly elastic because the firm can purchase any quantity of the input at the prevailing market price, without affecting the price. In contrast, the market supply curve reflects the aggregated response of all firms in the market to changes in the input price. The market supply curve, therefore, can slope upward, reflecting the increasing opportunity cost of producing more of the input as market demand for the output expands. The market supply curve can also bend backward, indicating that a higher price of the input induces some firms to decrease the quantity supplied of the input because they switch to producing other goods. However, backward-bending supply curves are relatively rare.

The Basic Difference Between the Market Supply Curve of an Input