The reason why the short-run supply curve is upward-sloping is

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The short-run supply curve is upward-sloping because of the law of diminishing marginal returns. This law states that as a firm increases the quantity of output produced, while holding all other inputs constant, the marginal product of the variable input (typically labor) eventually decreases. This means that as the firm produces more, each additional unit of output becomes more costly to produce, requiring higher prices to justify supplying that additional unit. Therefore, the upward-sloping supply curve reflects the increasing marginal cost of production as output increases in the short run.

The Reason Why the Short-Run Supply Curve Is Upward-Sloping Is