In the short run,the horizontal sum of all of the marginal cost curves (above minimum average variable cost)of individual firms in a competitive market defines the

Question

Quizplus · Accepted Answer

In a competitive market, each firm produces at the point where marginal cost equals price. Thus, the horizontal sum of all the marginal cost curves above minimum average variable cost gives us the market supply curve, which shows the total quantity of a good that all firms are willing and able to supply at each price level. Therefore, the correct answer is C) market supply curve.

In the Short Run,the Horizontal Sum of All of the Marginal