Which of the following is a firm's supply curve in a perfectly competitive market?
A) Total cost.
B) Marginal revenue.
C) Marginal cost.
D) Average variable cost.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm's supply curve is its marginal cost curve, as the firm will produce as long as the price is higher than the marginal cost of production. Marginal revenue (B) will be equal to price in a perfectly competitive market, but it is not the supply curve. Total cost (A) and average variable cost (D) are not related to the supply curve.

Which of the Following Is a Firm's Supply Curve in a Perfectly