The supply curve of a good slopes upward to the right because of
A)technological improvements over time.
B)increasing marginal cost as production increases.
C)the law of demand.
D)the existence of substitutes in production.
E)the fact that prices tend to rise over time.

Question

Quizplus · Accepted Answer

The supply curve of a good slopes upward to the right because of increasing marginal cost as production increases. As more units of a good are produced, the cost of producing each additional unit often increases due to diminishing marginal returns or the need for additional resources. This causes suppliers to require a higher price to cover the higher costs of production.

The Supply Curve of a Good Slopes Upward to the Right