The competitive firm's short-run supply curve is its
A)marginal revenue curve, but only the portion where marginal revenue exceeds marginal cost.
B)marginal cost curve.
C)marginal cost curve, but only the portion above the minimum of average total cost.
D)marginal cost curve, but only the portion above the minimum of average variable cost.

Question

Quizplus · Accepted Answer

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

The Competitive Firm's Short-Run Supply Curve Is Its