The supply curve of a perfectly competitive firm is identical to its

The supply curve of a perfectly competitive firm is identical to its marginal cost curve. This means that the firm will supply goods as long as the price of the good exceeds the marginal cost of producing that unit. As the price increases, the firm will increase its quantity supplied, and as the price decreases, the firm will decrease its quantity supplied. This relationship between price and quantity supplied is captured by the firm's supply curve, which is directly related to its marginal cost curve.