Question

Short run supply curve of a perfectly competitive firm is represented by _______.

• A. short run MC curve
• B. short run AC curve
• C. the part of the MC curve that lies above AVC
• D. none of these

Answer 1

Answer: (B)

short run AC curve

The short run supply curve of a perfectly competitive market is the locus of all such points that show the combinations of different quantity quoted at a price at which the firm is willing to supply output in the market. It is represented by short run average cost curve which shows the combination of output produced at a certain cost plus the profit.