Question

Market supply in the short-run is the _______ of individual firms' _______ . Group of answer...

Market supply in the short-run is the _______ of individual firms' _______ .

Group of answer choices

sum; marginal cost curves

sum; average total costs

average; marginal cost

market average; total costs

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Answer #1

It shall be noted that in the short run, the market supply curve is the horizontal sum of each individual firm’s supply curve (marginal cost curve above the minimum of the average variable cost). That is, the amount supplied by the total market equals the sum of what each firm in the industry supplies at a given price.

Hence, correct answer is sum; marginal cost curves

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