The short-run supply curve of a perfectly competitive firm is

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In perfect competition, a firm will produce where MR=MC. The short-run supply curve of a firm is the portion of the marginal cost curve which lies above the average variable cost curve, as long as price is higher than the minimum point of the AVC curve. This is because, in the short run, a firm will only produce if it can cover its variable costs. If the price is not high enough to cover variable costs, the firm will shut down. Therefore, the best choice is B.

The Short-Run Supply Curve of a Perfectly Competitive Firm Is