The supply curve for a perfectly competitive market

Question

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In a perfectly competitive market, each firm is a price taker, meaning they have no control over the market price of the product. Therefore, each firm produces where their marginal cost equals the market price. The supply curve for the market is the horizontal summation of all the individual firm's supply curves, which are their marginal cost curves above the minimum of the average variable cost curve. This is because firms will only produce if they can cover their variable costs, so the supply curve does not include any portion of the marginal cost curve below the minimum of the average variable cost curve.

The Supply Curve for a Perfectly Competitive Market