The short-run market supply curve in a perfectly competitive industry
A)shows the total quantity supplied by all firms at each possible price.
B)is perfectly inelastic at the market price.
C)is perfectly elastic at the market price.
D)shows the variety of prices that different firms will charge for a given quantity.

Question

Quizplus · Accepted Answer

The short-run market supply curve in a perfectly competitive industry shows the total quantity supplied by all firms at each possible price. This is because in a perfectly competitive industry, all firms produce the same product and have access to the same resources and technology, so they will all supply the same quantity at a given price.

The Short-Run Market Supply Curve in a Perfectly Competitive Industry