When price exceeds average variable cost in the short run, a competitive firm's marginal cost curve is regarded as its supply curve because
| a. the position of the marginal cost curve determines the price for which the firm should sell its product. |
| b. among the various cost curves, the marginal cost curve is the only one that slopes upward. |
| c. the marginal cost curve determines the quantity of output the firm is willing to supply at any price. |
| d. the firm is aware that marginal revenue must exceed marginal cost in order for profit to be maximized. |
In a perfectly competitive market, marginal cost is the supply curve because firm equates price with marginal cost. This is because in a perfectly competitive market price is equal to marginal revenue.
When price exceeds average variable cost in the short run, a competitive firm's marginal cost curve...