The complete description of a competitive firm's supply curve is as follows: The competitive firm's short-run supply curve is that portion of the

Question

Quizplus · Accepted Answer

In the short-run, a competitive firm's supply curve is determined by its marginal cost curve. As long as the price of the product is greater than or equal to the firm's average variable cost, the firm will continue to produce in the short-run. Thus, in the short-run, the portion of the marginal cost curve that lies above the average variable cost curve represents the firm's supply curve.

The Complete Description of a Competitive Firm's Supply Curve Is