The+Relationship+Between+Market+Supply+and+the+MC+Curves+of+Individual+Firms

The relationship between Market supply and the MC curves of the individual firm in perfect competition is that the market supply is the same thing as the MC curve after it has passed the Average Variable costs. This means that the market supply and the marginal costs for a specific firm are equal. Yet it must be remembered that this is only after the Average Variable costs curve has been passed by the MC curve. For example, if a firm's average variable costs and marginal costs cross at six dollars, the MC curve at six dollars and above is the market supply curve for that company/industry. This is only because below the average variable costs, the company would not be producing the supply for those products since it is at a loss, so it is the supply schedule for the company after AVC is surpassed.
 * The Relationship between Market Supply and the MC curves of the individual firm**

media type="youtube" key="LlLbPNZDkDQ" height="344" width="425"

[|Defining What market supply is] [|Market Supply in perfect competition] [|Market Supply]**
 * External Helpful Links

The Market Supply curve is equal to the Marginal Cost Curve when MC is above ___.
 * Sample Question**:

Average Variable Cost
 * Answer**: