Mtovar5667 Mtovar5667
  • 26-02-2020
  • Business
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The market supply curve for a product is derived from the individual firm supply curves by

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tutordamola
tutordamola tutordamola
  • 27-02-2020

Answer:

The answer is by summing the individual supply curves of all firms in an industry.

Explanation:

The market supply curve is an upward sloping curve showing the positive relationship between price and quantity supplied which has a direct relationship. The market supply curve is derived by adding up the quantity suppliers are willing to produce when the product can be sold for a given price.

As the price increases, the quantity supplied by every firm increases which depicts the the popular law of supply.

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