A firm’s willingness to supply its product in the short run is represented on a graph by the

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BlackTom AI · Accepted Answer

The question asks how a firm’s willingness to supply its product in the short run is represented on a graph. 
Option a: 'market supply curve.' This is incorrect because the market supply curve shows the total quantity supplied by all firms in the market at each price, not the individual firm's short-run supply decision.
Option b: 'marginal revenue curve.' The marginal revenue curve reflects revenue per additional unit, not the quantity a single firm is willing to supply at each price in the short run. It is more relevant for profits and maximizing output than for the supply curve itself.
Option c: 'part of the MC curve above minimum average total cost.' This mixes concepts: the part of the marginal cost (MC) curve above average total cost (ATC) relates to profit-maximizing behavior in perfect competition under certain conditions, but the standard short-run supply curve for a competitive firm is linked to the MC curve above the shutdown point, which is minimum average variable cost, not above ATC.
Option d: 'part of the MC curve above minimum average variable cost.' This is the correct interpretation. In the short run, a perfectly competitive firm will supply where price equals marginal cost, but only if price covers average variable cost; the portion of the MC curve that lies above the minimum of the average variable cost (AVC) represents the quantities the firm is willing to supply at each price. Below that point (where price < AVC), the firm would shut down and provide zero output, so that portion of MC is not part of the short-run supply.
In summary, the short-run supply decision for an individual firm in a competitive market is given by the upward-sloping portion of the MC curve above the shutdown point, which occurs at the minimum AVC. This aligns with standard microeconomics results for short-run firm supply behavior.

A firm’s willingness to supply its product in the short run is represented on a graph by the

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