Supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable cost curve'. Do you agree ? Support your answer with valid reason.

Supply curve is the rising portion of marginal cost curve over and abo

1.	Supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable cost curve'. Do you agree ? Support your answer with valid reason.
Answer» Solution :Yes, I agree that supply CURVE is the RISING portion of marginal, COST curve over and above the minimum of AVC curve. It is because that no producer (seller) would be prepared to SELL his production in the market, if he is not able to recover AVC as it would bring losses to him between the range of minimum MC and minimum AVC.