QuestionMay 27, 2025

e short-run supply curve for a purely competitive industry can be found by Multiple Choice multiplying the AVC curve of the representative firm by the number of firms in the industry. adding horizontally the AVC curves of all firms. summing horizontally the segments of the MC curves lying above the AVC curve for all firms. adding horizontally the immediate market period supply curves of each firm.

e short-run supply curve for a purely competitive industry can be found by Multiple Choice multiplying the AVC curve of the representative firm by the number of firms in the industry. adding horizontally the AVC curves of all firms. summing horizontally the segments of the MC curves lying above the AVC curve for all firms. adding horizontally the immediate market period supply curves of each firm.
e short-run supply curve for a purely competitive industry can be found by
Multiple Choice
multiplying the AVC curve of the representative firm by the number of firms in the industry.
adding horizontally the AVC curves of all firms.
summing horizontally the segments of the MC curves lying above the AVC curve for all firms.
adding horizontally the immediate market period supply curves of each firm.

Solution
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Answer

Summing horizontally the segments of the MC curves lying above the AVC curve for all firms. Explanation 1. Identify the correct method for finding the short-run supply curve The short-run supply curve for a purely competitive industry is found by summing horizontally the segments of the marginal cost (MC) curves that lie above the average variable cost (AVC) curve for all firms. This reflects the portion of the MC curve where firms are willing to supply additional output.

Explanation

1. Identify the correct method for finding the short-run supply curve<br /> The short-run supply curve for a purely competitive industry is found by summing horizontally the segments of the marginal cost (MC) curves that lie above the average variable cost (AVC) curve for all firms. This reflects the portion of the MC curve where firms are willing to supply additional output.
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