The short run supply curve of a perfectly competitive firm is equal to

CA Foundation · Business Economics · MTP · April 2025
The short run supply curve of a perfectly competitive firm is equal to
(A) A. That portion of the short run marginal cost curve that is above the average variable cost curve
(B) B. That portion of the short run marginal cost curve that is above the average total cost curve
(C) C. That portion of the short run average total cost curve that is above the average variable cost curve
(D) D. None of the above is correct.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. That portion of the short run marginal cost curve that is above the average variable cost curve

Topics: Price Determination in Different Markets

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