For a firm in a perfectly competitive market, its short-run supply curve is that portion of the MC curve above where it intersects with the average total cost curve.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm's short-run supply curve is that portion of the marginal cost (MC) curve that lies above the average variable cost (AVC), not the average total cost (ATC).

For a Firm in a Perfectly Competitive Market, Its Short-Run