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

Question

Quizplus · Accepted Answer

In the long run, a competitive firm's supply curve is the portion of its marginal cost curve that lies above its average total cost. This is because, in the long run, firms will only produce and sell output if the price (and thus marginal revenue) covers the average total cost, ensuring they can make a non-negative profit.

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