Question

In the perfectly competitive market for fish, the industry supply curve is equal to the marginal cost curves of the individual fish supplying firms that make up that industry.

A) True
B) False

Answer 1

True

Step-by-step explanation:

Marginal Cost is the addition to total cost , when an additional unit of output is produced. Rising portion of U shaped MC curve is the supply curve, & reflect suppliers ability & willingness to supply.

Perfect Competition is a market form in which large no. of sellers, sell homogenous products at similar constant prices. These markets industry supply curves is determined by their firms' marginal cost curve. Given, the fish market is perfectly competitive. So, fish industry supply curve is same as (equal to) marginal cost of firms constituting the industry.