The short-run supply curve for a firm in a perfectly competitive market is
A)horizontal.
B)likely to slope downward.
C)determined by forces external to the firm.
D)the portion of its marginal cost curve that lies above its average variable cost.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm's short-run supply curve is represented by the portion of its marginal cost curve that lies above its average variable cost curve. This is because the firm will only supply output at a price that covers its average variable costs in the short run.

The Short-Run Supply Curve for a Firm in a Perfectly