The supply curve for a firm in perfect competition is:
A) perfectly horizontal.
B) perfectly vertical.
C) the MC curve above the ATC curve.
D) the MC curve above the AVC curve.

Question

Quizplus · Accepted Answer

In perfect competition, a firm's supply curve is the portion of its marginal cost (MC) curve that lies above the average variable cost (AVC) curve, as this is where the firm covers its variable costs and contributes to fixed costs.

The Supply Curve for a Firm in Perfect Competition Is