Paper 1 · June 2009 · Market Structures
The short-run supply curve of a perfectly competitive firm is the
Aentire marginal cost curve.
Bentire short-run average cost curve.
Cshort-run average cost curve above the minimum marginal cost.
Dmarginal cost curve above the short-run average variable cost curve.
Explanation
A perfectly competitive firm will supply output only if price covers average variable cost. Therefore the short-run supply curve is the MC curve above the minimum AVC (i.e. above the short-run average variable cost curve).
ZIMSEC Economics Paper 1, June 2009, Q5