In Order to Derive the Market Supply Curve from Individual

question 109

Multiple Choice

In order to derive the market supply curve from individual supply curves, we add up the

• A) various prices that individual sellers are charging for the product.
• B) various quantities that individual sellers want to sell at specific price levels.
• C) total number of sellers in the market at a given time.
• D) costs that all individual sellers incur in producing the product.

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Definitions:

Amazonomachy

In Greek mythology, the battle between the Greeks and Amazons.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, used to determine the most profitable level of output.

Marginal Profit

Marginal profit is the addition to total profit from producing one more unit of output, calculated as the difference between marginal revenue and marginal cost for that unit.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price-taking behavior.