Equilibrium in Perfectly Competitive Markets(Assume for simplicity that all firms haveaccess to the same technology and inputmarkets, so they all have the same cost curves.)Market Supply in the Short RunTo derive the market supply curve from thesupply curves of the individual firms, we add upthe quantities supplied by all the firms at anyprice. Thus, horizontally sum the marginal costcurves of all the firms in the market.To find the market equilibrium, find theintersection of the market supply curve and themarket demand curve.
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