Which curve is a firm's short-run supply curve part of

Question

Quizplus · Accepted Answer

The short-run supply curve of a firm is determined by its marginal cost curve. This is because in the short-run, a firm can only adjust its output by changing its variable inputs, while fixed inputs remain constant. As a result, the marginal cost of producing an additional unit of output will determine the firm's willingness to supply that unit. If the market price exceeds the marginal cost, the firm will increase its output, while if the market price is less than the marginal cost, the firm will reduce its output. Therefore, the correct answer is D) marginal-cost.

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