The short-run supply curve for a perfectly competitive firm is its marginal cost curve above its average variable cost curve.
In economics, a perfectly competitive firm are known as the price taker as the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. When a firm in a perfectly competitive market raises the price of its product by so much as a penny, it could lose all of its sales to competitors.
As such, the short run supply curve of this perfectly competitive market is the locus of all such points that show the combinations of different quantity quoted at a price at which the firm is willing to supply output in the market and it is often represented by short run average cost curve which shows the combination of output produced at a certain cost plus the profit.
Therefore, the Option B is correct.
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