单选题 The short-run supply curve for a price taker firm is the portion of the marginal:

A. cost (MC) curve below the average variable cost (AVC) curve.
B. cost (MC) curve above the average total cost (ATC) curve.
C. cost (MC) curve above the average variable cost (AVC) curve.

【正确答案】 C

【答案解析】The short-run supply curve for a firm is its MC curve above the AVC curve. Price takers will produce where price (P) equals MC. At prices below the AVC curve the firm will not be able to remain in operation. The firm is earning a normal return where P is equal to the ATC curve. Above the ATC curve the firm is making economic profits and will continue to expand production along the MC curve.