The short-run supply curve of a perfect competitor is

Question

Quizplus · Accepted Answer

In the short run, a perfect competitor will produce and supply as long as the price covers its variable costs. Therefore, the short-run supply curve will be the portion of the marginal cost curve that is above the minimum point of the average variable cost curve, as producing below that point would result in losses for the firm. Therefore, the correct answer is (D), its marginal cost curve equal to or above the minimum point on its average variable cost curve.

The Short-Run Supply Curve of a Perfect Competitor Is