How does the SMC curve above the SAVC curve represent the supply curve of a firm - Economics - Production and Costs

Question

How does the SMC curve above the SAVC curve represent the supply
curve of a firm???

P. Sujatha · Accepted Answer

Dear Student

Please find below the solution to your query

1 The short run supply curve of
perfect competitive firm is the summation of the upward sloping
portion of SMC (above the minimum point of SAVC),

and vertical portion of price-axis

2 If the SAC is above SAVC and MC is
upward sloping, the supply curve is regarded as upward sloping part
of SMC and hence, it is regarded as short run supply curve of a
firm

Regards

How does the SMC curve above the SAVC curve represent the supply curve of a firm???