Final answer:
The short-run supply curve for a firm is identical to its marginal cost curve above the minimum average variable cost, which helps maximize profits by producing at a point where market price equals marginal cost.
Step-by-step explanation:
A firm's short-run supply curve is the same as its marginal cost curve above minimum average variable cost if it produces the good. This is because, in perfect competition, a firm will maximize its profits by setting quantity where the market price (P) equals marginal cost (MC), given that P is above the minimum average variable cost.
It's essential for the firm to produce above this level because producing at a price below the average variable cost would mean that the firm is not covering its variable costs, leading to losses.