If the marginal cost curves of all the firms in an industry are horizontally summed, one obtains
A)market demand.
B)total industry cost.
C)nothing of value.
D)market supply.
E)total fixed costs.

Question

Quizplus · Accepted Answer

Horizontally summing the marginal cost curves of all firms in an industry results in the market supply curve, not market demand or total fixed costs. This curve shows the quantity of a good or service that all firms in an industry are willing and able to offer at different price points.

If the Marginal Cost Curves of All the Firms in an Industry