The supply curve of a price-taker firm in the short run is the
A) firm's average variable cost curve.
B) portion of the firm's average total cost curve that lies above average variable cost curve.
C) portion of the firm's marginal cost curve that lies above average variable cost curve.
D) firm's marginal revenue curve.

Question

Quizplus · Accepted Answer

In the short run, a price-taker firm's supply curve is the portion of its marginal cost curve that lies above the average variable cost curve, as this represents the range of output where the firm covers its variable costs and contributes to fixed costs.

The Supply Curve of a Price-Taker Firm in the Short