A perfectly competitive firm's marginal cost curve above the minimum value of average variable cost is equivalent to the

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A perfectly competitive firm's supply curve is equivalent to its marginal cost curve above the minimum point of the average variable cost curve. This is because in the short run, a firm will produce at the point where marginal cost equals price (which is equal to the demand curve in a perfectly competitive market), as long as this point is above the minimum point of the average variable cost curve (otherwise, the firm would shut down). Therefore, the firm's marginal cost curve above the minimum point of the average variable cost curve is equivalent to its supply curve.

A Perfectly Competitive Firm's Marginal Cost Curve Above the Minimum