CBSE Class 12-commerce Answered

Yes. Supply curve shows that the changes prevailing between price and quantity. In the short run, variable factors can change to increase the level of supply. The firm requires to cover the variable cost of production and it tends to supply the goods at a price level to cover the cost. So the price level will be equal or greater than the average variable cost. Thus, the supply curve is rising portion of marginal cost curve over and above the minimum of average cost curve.