The shortrun market supply in a perfectly competitive market

The short-run market supply in a perfectly competitive market is the horizontal summation of the firms\' marginal cost curves when O increases in industry output do not affect input prices. O increases in industry output lead to increases in input prices increases in industry output lead to increases in market price. O increases in industry output do not affect market price.

Solution

The short run market supply in a perfectly competitive market is the horizontal summation of the firms\' marginal cost curves when:

- increases in industry output do not affect input prices (if the input prices are affected, marginal costs would also be affected)