CUET Preparation Today
The short run supply curve is represented as? |
The rising part of the marginal cost curve. The rising part of the marginal cost curve from and above the minimum average variable cost curve. The rising part of the marginal cost curve from and above the minimum average cost curve. The marginal cost curve. |
The rising part of the marginal cost curve from and above the minimum average variable cost curve. |
The correct answer is Option (2) → The rising part of the marginal cost curve from and above the minimum average variable cost curve. A firm’s short run supply curve is the rising part of the SMC curve from and above the minimum AVC together with zero output for all prices strictly less than the minimum AVC. In figure given below, the bold line represents the short run supply curve of the firm.
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