What do we know about the short-run supply curve for a firm in a perfectly competitive market

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the short-run supply curve for a firm is determined by its marginal-cost curve (above average variable cost). This is because the firm will only produce as long as the price is greater than or equal to its marginal cost, but will shut down if the price falls below its average variable cost. Therefore, the short-run supply curve for a firm in a perfectly competitive market will be the portion of the marginal-cost curve that lies above the average variable cost curve.

What Do We Know About the Short-Run Supply Curve for a Firm