The supply curve for the firm in perfect competition:

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In perfect competition, the firm is a price taker, meaning that it cannot influence the market price. Therefore, the supply curve shows the quantity that the firm is willing and able to produce at each possible market price. The supply curve is typically derived from the marginal cost curve, as the firm will only produce and sell the output as long as price covers the marginal cost of production. However, the supply curve does not necessarily result in a price greater than marginal revenue, as long as the price is greater than or equal to marginal cost, the firm is maximizing its profits. The supply curve also does not necessarily show outputs where the firm makes an economic profit, as the equilibrium price in perfect competition may be such that the firm earns only normal profit or zero economic profit in the long run.

The Supply Curve for the Firm in Perfect Competition