The short-run supply curve for a competitive industry:
A)is subject to the law of diminishing returns.
B)is the industry's marginal cost curve.
C)coincides with the marginal revenue curve.
D)is horizontal because there are many buyers and sellers.

Question

Quizplus · Accepted Answer

In the short run, the supply curve for a competitive industry is influenced by the law of diminishing returns, which affects the marginal cost of production.

The Short-Run Supply Curve for a Competitive Industry