Horizontally summing different supply curves assumes
A) that individual firms cannot influence the good's price.
B) that all firms operate in collusion.
C) that only firms who volunteer are included in the summation.
D) all firms produce the same amount of output.

Question

Quizplus · Accepted Answer

Horizontally summing different supply curves assumes that individual firms cannot influence the good's price, meaning that each firm is a price taker and has no market power. This assumption allows for the aggregation of all individual firms' supply curves into one market supply curve.

Horizontally Summing Different Supply Curves Assumes