Under perfect competition, the firm's supply curve is made up of the

Name: Under perfect competition, the firm's supply curve is made up of the
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Under perfect competition, a firm will only supply when price is higher than or equal to minimum average variable cost (AVC), because at any point below the minimum of AVC, the firm would be better off shutting down rather than producing. Therefore, the supply curve of a perfectly competitive firm is made up of points where MC=MR above the minimum of AVC.

Under Perfect Competition, the Firm's Supply Curve Is Made Up