Figure 12-6
Figure 12-6 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 12-6.Identify the firm's short-run supply curve.

Question

Figure 12-6 
 Figure 12-6 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 12-6.Identify the firm's short-run supply curve.

Quizplus · Accepted Answer

The short-run supply curve for a perfectly competitive firm is its marginal cost curve above its minimum average variable cost. In this case, the marginal cost curve from point B and above represents the portion of the curve where the firm's production would be profitable, since it is above the minimum average variable cost at point B. Therefore, the correct choice is C.

Figure 12-6 Figure 12-6 Shows Cost and Demand Curves Facing a Curves