The rising portion of a perfectly competitive firm's marginal cost curve, above the intersection with AVC, is its

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The rising portion of a perfectly competitive firm's marginal cost curve, above the intersection with AVC, represents the portion of the firm's supply curve, where the price is higher than AVC and the firm is willing to produce the corresponding level of output. This is because the firm's marginal cost increases as it produces more output, and it will only produce output as long as the price covers the additional cost of production. Therefore, the rising portion of the marginal cost curve above the intersection with AVC represents the firm's minimum supply price or the minimum price necessary to cover variable and fixed costs in the short run.

The Rising Portion of a Perfectly Competitive Firm's Marginal Cost