In a competitive industry the industry's short-run supply curve is

Question

Quizplus · Accepted Answer

In a competitive industry, firms are price takers, meaning they cannot influence the market price. Therefore, the short-run supply curve is determined by the individual firms' marginal costs. To find the industry's short-run supply curve, we add up the quantities supplied by each firm at every possible price. This is equivalent to horizontally summing the marginal cost curves. Therefore, choice A is the correct answer.

In a Competitive Industry the Industry's Short-Run Supply Curve Is