The short-run supply curve of the perfectly competitive firm is the firm's

Question

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In the short run, a perfectly competitive firm will produce where its marginal cost (MC) curve intersects its average variable cost (AVC) curve. If the price is above this point, the firm will earn positive profits and will continue to produce. If the price is below this point, the firm will shut down and incur losses equal to its fixed costs. Therefore, the short-run supply curve for a perfectly competitive firm is the portion of the MC curve that lies above the minimum point on the AVC curve.

The Short-Run Supply Curve of the Perfectly Competitive Firm Is