A supply curve
(i) plots the quantities a seller is willing to sell at different prices.
(ii) shows the total cost to the seller.
(iii) shows rising marginal costs.
(iv) shows rising fixed costs.

Question

Quizplus · Accepted Answer

The supply curve primarily plots the quantities a seller is willing to sell at different prices (i) and typically reflects rising marginal costs (iii), as it costs more to produce additional units. It does not directly show total cost to the seller (ii) or fixed costs, which do not change with the level of output (iv).

A Supply Curve (I) Plots the Quantities a Seller Is Willing to Sell