What does the supply curve for a firm in pure competition represent in the short run?

In the context of a firm operating under pure competition in the short run, the supply curve is derived from the firm's marginal cost (MC) curve. Specifically, the supply curve represents the quantities of output that the firm is willing to produce at different price levels, provided that the firm can cover its variable costs.

The correct answer reflects that a firm will only supply a product when the price exceeds the minimum average variable cost (AVC). This is because, in the short run, a firm needs to cover at least its variable costs to justify production. If the price falls below this level, the firm will minimize losses by shutting down production temporarily, as it would not be able to cover its variable costs.

Thus, the supply curve is effectively the portion of the marginal cost curve that lies above the minimum average variable cost. This segment represents the output levels at which the firm can operate and make a profit or minimize losses. If the price is set above this level, the firm is willing to supply more output in response to higher prices, as it is able to cover its costs and contribute to profit.