In a Market with 1,000 Identical Firms, the Short-Run Market

question 571

Multiple Choice

In a market with 1,000 identical firms, the short-run market supply is the

• A)marginal cost curve above average variable cost for a typical firm in the market.
• B)quantity supplied by the typical firm in the market at each price.
• C)sum of the prices charged by each of the 1,000 individual firms at each quantity.
• D)sum of the quantities supplied by each of the 1,000 individual firms at each price.

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Definitions:

Induced Consumption

Spending induced by changes in the level of income.

Autonomous Consumption

The minimum amount that people will spend on the necessities of life.

Income

The financial gain or money received by an individual or a business from various sources like work, investments, or transfers, during a specific period.

Consumption

The act of using goods and services for personal needs or to satisfy consumer desires.