A competitive firm's short-run supply curve is part of which of the following curves?

Question

Quizplus · Accepted Answer

The short-run supply curve of a competitive firm is a portion of its marginal cost curve. This is because in the short-run, the firm is only able to vary its output level by adjusting the usage of its variable inputs (such as labor and raw materials), and the cost of producing an additional unit of output is given by the marginal cost of production. Thus, as the price of the good increases, the firm will expand output until its marginal cost equals the market price, which corresponds to the quantity supplied at each price point on the short-run supply curve.

A Competitive Firm's Short-Run Supply Curve Is Part of Which