If the level of output produced by the firms in a perfectly competitive market has no effect on the prices of the inputs used by the firms,the market supply curve will be flatter than the supply curve for an individual firm in the market.

Question

Quizplus · Accepted Answer

The flatter market supply curve implies that firms can increase their output without affecting the input prices, indicating that the market is perfectly competitive. The supply curve for an individual firm will be steeper, as it has to pay a higher price for the inputs if it wants to produce more output.

If the Level of Output Produced by the Firms in a Perfectly