Above the minimum of average variable cost, the short-run supply curve of a perfectly competitive firm coincides with its:

1. A competitive firm equates price to marginal cost to maximise profit. 2. For each price above AVC, the firm supplies the quantity where MC equals that price. 3. So the MC curve traces the quantity supplied at each price. 4. Hence the MC curve above AVC is the firm's short-run supply curve. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit III "Price-Output Determination under Different Market Forms", p.5_