Which statement is true of the market supply curve?
A) It is the vertical summation of all the individual supply curves.
B) It is the horizontal summation of the upward sloping portion of the AVC function of all firms in the industry.
C) One must know the marginal cost information of firms in order to construct a supply function.
D) In perfect competition the slope of the curve is horizontal.
Correct Answer:
Verified
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