-The short-run supply curve for this producer in a perfectly competitive market is the:
A)entire MC curve
B)segment of the AVC curve lying to the right of the MC curve
C)segment of the MC curve lying above the AC curve
D)segment of the AC curve lying to the right of the MC curve
E)segment of the MC curve lying above the AVC curve

Question

-The short-run supply curve for this producer in a perfectly competitive market is the:
A)entire MC curve 
B)segment of the AVC curve lying to the right of the MC curve 
C)segment of the MC curve lying above the AC curve 
D)segment of the AC curve lying to the right of the MC curve 
E)segment of the MC curve lying above the AVC curve

Quizplus · Accepted Answer

The short-run supply curve for a producer in a perfectly competitive market is the segment of the marginal cost (MC) curve that lies above the average variable cost (AVC) curve. This is because a firm will only supply output in the short run if the price covers its variable costs.

-The Short-Run Supply Curve for This Producer in a Perfectly