In the short-run, a firm's supply curve is equal to the
A)marginal cost curve above its average variable cost curve.
B)marginal cost curve above its average total cost curve.
C)average variable cost curve above its marginal cost curve.
D)average total cost curve above its marginal cost curve.

Question

Quizplus · Accepted Answer

In the short-run, a firm's supply curve is represented by its marginal cost curve above the average variable cost curve because the firm will only produce if it can cover its variable costs.

In the Short-Run, a Firm's Supply Curve Is Equal to the