A perfectly competitive firm's short-run supply curve is
A)upward sloping and is the portion of the marginal cost curve that lies above the average total cost curve.
B)upward sloping and is the portion of the marginal cost curve that lies above the average variable cost curve.
C)perfectly elastic at the market price.
D)horizontal at the minimum average total cost.

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm's supply curve is the portion of its marginal cost curve that lies above the average variable cost curve, as the firm will only produce if it can cover its variable costs.

A Perfectly Competitive Firm's Short-Run Supply Curve Is