In a competitive market, what do the points on a market supply curve represent?

• A. The single equilibrium price and quantity where quantity supplied equals quantity demanded
• B. The quantity that consumers are willing and able to buy at each possible price, holding other factors constant
• C. The quantity that producers are willing and able to sell at each possible price, holding other factors constant
• D. The total cost of producing each possible quantity of output at a fixed price

Answer: (C)

Verified step by step guidance

1. Understand that a market supply curve shows the relationship between price and quantity supplied by producers in a competitive market.
2. Recognize that each point on the supply curve corresponds to a specific price and the quantity that producers are willing and able to sell at that price.
3. Recall that the supply curve holds other factors constant (ceteris paribus), meaning it isolates the effect of price on quantity supplied.
4. Distinguish the supply curve from the demand curve, which shows quantities consumers are willing to buy, and from equilibrium points, which are where supply equals demand.
5. Conclude that points on the market supply curve represent the quantities producers supply at various prices, not total costs or consumer behavior.