The competitive firm's short-run supply curve is that portion of the
A)average variable cost curve that lies above marginal cost.
B)average total cost curve that lies above marginal cost.
C)marginal cost curve that lies above average variable cost.
D)marginal cost curve that lies above average total cost.

Question

Quizplus · Accepted Answer

In the short run, a competitive firm's supply curve is the portion of the marginal cost curve that lies above the average variable cost curve, as the firm will only produce if it can cover its variable costs.

The Competitive Firm's Short-Run Supply Curve Is That Portion of the