The ________ supply curve(s) of a perfectly competitive firm is the portion of its marginal cost curve that lies above its average variable cost curve.
A) long-run
B) short-run
C) short-run and long-run
D) A perfectly competitive firm faces no supply curve.

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm's supply curve is represented by the portion of its marginal cost (MC) curve that lies above its average variable cost (AVC) curve. This is because, in the short run, the firm will only supply output if the price covers its variable costs, even if it doesn't cover all fixed costs.

The ________ Supply Curve(s) of a Perfectly Competitive Firm Is