Question

In a market with 1,000 identical firms, the short-run market supply is the A. quantity supplied by the typical firm in the market at each price. B. sum of the prices charged by each of the 1,000 individual firms at each quantity. C. marginal cost curve above average variable cost for a typical firm in the market. D. sum of the quantities supplied by each of the 1,000 individual firms at each price.

Answer 1

The correct answer is option D.

Step-by-step explanation:

The short run market supply curve is the summation of the individual supply curves of each firm.

The individual supply curve shows the quantity of product each supplier will be willing to supply at different price levels.

So, the market supply curve will be the summation of quantities supplied by each of the 1,000 firms at each price level.