The supply curve is derived from:

Question

Quizplus · Accepted Answer

The supply curve is derived from the horizontal summation of all individual firm marginal cost curves, which represents the cost of producing each additional unit of the good. This is because, as the price of a good increases, individual firms are willing to produce more of it due to the potential for higher profits. The marginal cost curve shows the cost of producing each additional unit of the good, so by adding up the marginal cost curves of all the firms in the market, we can derive the market supply curve.

The Supply Curve Is Derived From