The correct option is (c).

The short-run supply curve for a competitive firm is the segment of the MC curve lying above the AVC curve.

The firm's marginal cost curve above the minimum of AVC is its short-run supply curve. The minimum of AVC is the shutdown point below which no firm can produce. The minimum of AVC is the lowest point at which a firm can supply the goods. As the marginal cost rises, the firm will supply more as the price increase. A higher price will incentivize the firm to supply more, and the higher price represents the increasing marginal cost. Hence, a firm supplies along the marginal cost curve.

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