Question

a firms supply curve is equal to __________ above the minimum point on the __________ curve.
select the correct answer below:
marginal revenue; average total cost
marginal cost; average variable cost
average total cost, marginal cost
average variable cost, average total cost

Explanation:

In a perfectly - competitive market, a firm's supply curve is equal to its marginal cost curve above the minimum point on the average variable cost curve. This is because below the minimum of the average variable cost, the firm will shut down in the short - run.

Answer:

B. marginal cost; average variable cost