The competitive firm's supply curve is equal to A

Economics Dec 12, 2020

The competitive firm's supply curve is equal to

A. its marginal cost curve.

B. the portion of its marginal cost curve that lies above AFC.

C. the portion of its marginal cost curve that lies above AVC.

D. the portion of its marginal cost curve that lies above AC.

Expert Solution

The supply curve refers to a graphical representation that represents the relationship between the price of the product and the product's quantity, which the seller is willing to supply to the customers. The supply curve of a competitive firm is equal to a part of the marginal cost, which is above the Average Variable Cost. (Correct answer: C)

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