Given the shutdown rule,what does the firm's short-run supply curve look like?

Question

Quizplus · Accepted Answer

The shutdown rule states that a firm should shut down if the price falls below the minimum point of the AVC curve. Therefore, in the short run, the firm will only produce output as long as the price is above the minimum point of the AVC curve. Thus, the short-run supply curve will only include the section of the MC curve that lies above the AVC curve, as this represents the level of output that the firm is willing to produce at each price point above its shutdown point.

Given the Shutdown Rule,what Does the Firm's Short-Run Supply Curve