The short-run supply curve of a firm is the portion of the MC curve .
A
below the AVC curve
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B
below the SAC curve
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C
above the AVC curve
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D
above the SAC curve
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Solution
The correct option is C above the AVC curve The short-run supply curve is the portion of the MC curve above the AVC curve. Below the AVC curve, the firm shuts down and above the AVC curve, production happens to correspond to MR=P.