Assuming fixed factor prices, the short-run industry supply curve for a perfectly competitive industry is equal to the sum of the

Question

Quizplus · Accepted Answer

In the short-run, firms in a perfectly competitive industry will only produce if the price is higher than their minimum AVC. Thus, the industry supply curve will be the total quantity supplied by all firms whose MC is higher than the minimum AVC. Therefore, the correct answer is C, which represents the sum of the MC curves (as they determine the quantity supplied) above the minimum AVC (as firms will not produce below this point).

Assuming Fixed Factor Prices, the Short-Run Industry Supply Curve for a Perfectly