The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-An individual perfectly competitive firm's supply curve is its:

Question

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
  MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-An individual perfectly competitive firm's supply curve is its:

Quizplus · Accepted Answer

The individual perfectly competitive firm's supply curve is its marginal cost curve. This is because in perfect competition, the price is set by the market and the firm cannot charge a higher price than the market price. Therefore, the firm will only produce as long as its marginal cost is less than or equal to the market price. This means that the marginal cost curve is the firm's supply curve.

The Figure Given Below Shows the Revenue and Cost Curves