In a perfectly competitive market, the horizontal sum of all the individual firms' supply curves is
A)zero.
B)equal to the industry profits.
C)the market supply curve.
D)a horizontal line.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, each individual firm is a price-taker, meaning it cannot influence the market price of the good or service. Therefore, each firm's supply curve is perfectly elastic or horizontal at the market price. The horizontal sum of all the individual firms' supply curves is the market supply curve, which represents the total quantity of the good or service that all firms are willing to supply at each possible price. Therefore, option C is the correct answer.

In a Perfectly Competitive Market, the Horizontal Sum of All