The short-run supply curve for a competitive firm is the
A)entire MC curve.
B)segment of the MC curve lying below the AVC curve.
C)segment of the MC curve lying above the AVC curve.
D)segment of the AVC curve lying to the right of the MC curve.

Question

Quizplus · Accepted Answer

The short-run supply curve for a competitive firm is the segment of the marginal cost (MC) curve that lies above the average variable cost (AVC) curve. This is because a firm will only supply output in the short run if the price covers its variable costs, which is represented by the AVC.

The Short-Run Supply Curve for a Competitive Firm Is the