The market supply curve: Group of answer choicesis the horizontal summation of individual firm’s ATC curves.is the summation of the individual firm’s AVC curves for every level of output.is the prices firms choose to sell in a competitive market.is the horizontal summation of individual firm supply curves.None of the answers in this list apply.
Question
The market supply curve: Group of answer choicesis the horizontal summation of individual firm’s ATC curves.is the summation of the individual firm’s AVC curves for every level of output.is the prices firms choose to sell in a competitive market.is the horizontal summation of individual firm supply curves.None of the answers in this list apply.
Solution
The market supply curve is the horizontal summation of individual firm supply curves.
Here's a step-by-step explanation:
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Each firm in a market has its own supply curve, which shows the quantity of a good it is willing to supply at different prices.
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To get the market supply curve, you add up the quantities that all the firms in the market are willing to supply at each price.
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This is done by horizontally summing the individual firm supply curves.
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The result is the market supply curve, which shows the total quantity of a good that firms are willing to supply in the market at different prices.
So, the correct answer is "The market supply curve is the horizontal summation of individual firm supply curves."
Similar Questions
The short-run market supply curve isQuestion 3Select one:a.the vertical summation of each firm's short-run supply curve.b.the horizontal summation of each firm's short-run supply curve.c.the horizontal summation of each firm's short-run average cost curve.d.the vertical summation of each firm's short-run average cost curve.Clear my choice
Market demand is the horizontal summation of individual curves.
The short-run supply curve of a competitive firm is the portion ofGroup of answer choicesthe average variable cost curve that lies above its marginal cost curve.its marginal cost curve that lies above its average variable cost curve.its marginal cost curve that lies above its average total cost curve.its average total cost curve that lies above its marginal cost curve.
Which statement is true? Group of answer choicesThe market supply curve is derived assuming consumers are price takers, but that firms in the market are not price takers.The supply curve for an individual firm is derived assuming the firm itself is a price taker, but this is not true for the derivation of the market supply curve.The supply curves for both an individual firm and for the market are derived assuming all firms are price takers.All of the above.None of the above.
The firm’s short-run supply curve is a(n) _____-sloping curve that begins at _____ average variable cost.Multiple choice question.upward; minimumdownward; minimumdownward; maximumupward; maximum
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