Question

What is the rising portion of marginal cost curve known as?

Answer 1

Yes, we do agree with the given statement that supply curve is the rising portion of marginal cost mover and above the minimum of average variable cost curve.At a given price, a firm strikes its equilibrium when
Price= MC and MC is rising.In the short run, a firm must cover its variable cost. So that, it will undertake production only if TR = TVC orTR/Q= TVC/Qor AR = AVC,
or P = AVC.
Therefore, short run supply curve of the firm starts from its shut-down point, the point where P = AVC.