Find the new market supply by the short-run supply curves for all the firms in the market. (Please use one word for the blank)
Question
Find the new market supply by the short-run supply curves for all the firms in the market. (Please use one word for the blank)
Solution
To find the new market supply by the short-run supply curves for all the firms in the market, it’s essential to understand that in perfect competition, the individual firm’s short-run supply curve is the portion of its marginal cost curve that lies above its average variable cost.
The market supply is derived by summing the individual supply curves of all firms in the industry. If the question pertains to the changes in market supply (such as shifts due to changes in costs, taxes, or technological advancements), identifying the reasons for these shifts is crucial.
The blank you're looking to fill could typically be "supply" or "curve," depending on the context of the question. However, if I had to choose one word that generally fits into similar discussions it would be:
Supply
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