A competitive firm's supply curve is
A)output price.
B)its marginal cost curve.
C)its total revenue curve.
D)its total cost curve.
E)its marginal revenue curve.

Question

Quizplus · Accepted Answer

A competitive firm's supply curve is determined by its marginal cost curve, as the firm's profit-maximizing output level will be where marginal cost equals the market price. Therefore, the firm's supply curve will reflect the portion of the marginal cost curve above the minimum point of the average variable cost curve.

A Competitive Firm's Supply Curve Is