There is a market supply curve in a:
A) perfectly competitive market.
B) monopolistically competitive market.
C) monopolistic market.
D) perfectly competitive market and monopolistically competitive market.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the market supply curve is determined by the aggregate of individual firms' supply curves. Each firm in a perfectly competitive market is a price-taker, meaning that they cannot influence the market price and must accept the prevailing price as given. Therefore, the market supply curve is horizontal, indicating that firms are willing to supply any quantity at the going market price. In other markets, such as monopolistically competitive and monopolistic markets, firms have some degree of market power and can influence the price, making the market supply curve more complex.

There Is a Market Supply Curve in A