The ________ part of a perfectly competitive firm's marginal cost curve is the firm's short-run supply curve.
A) rising
B) falling
C) horizontal
D) backward-bending

Question

Quizplus · Accepted Answer

The rising part of a perfectly competitive firm's marginal cost curve is its short-run supply curve because the firm will increase production as long as the price (or marginal revenue) is above the marginal cost, which aligns with the upward slope of the marginal cost curve beyond the minimum point.

The ________ Part of a Perfectly Competitive Firm's Marginal Cost