The basic reason that supply curves slope upward is that

Question

Quizplus · Accepted Answer

The law of diminishing returns dictates that as production increases, the costs of production also increase. This is due to the fact that more inputs are required to produce additional output, which increases the marginal cost of production. As the cost of production increases, producers are willing to supply more goods at higher prices to cover their costs and earn a profit. Therefore, supply curves slope upward.

The Basic Reason That Supply Curves Slope Upward Is That