The supply curve is upward-sloping (i.e. ,it takes a higher price to induce greater production)because of
A)Increasing total costs.
B)Increasing fixed costs.
C)Increasing marginal costs.
D)The decreasing skill level of additional workers.

Question

Quizplus · Accepted Answer

The supply curve is upward-sloping because of increasing marginal costs. This means that as production increases, each additional unit produced costs more than the previous one. Therefore, to induce greater production, the price must increase to cover these increasing costs. The other choices (A, B, D) do not fully explain the upward-sloping supply curve.

The Supply Curve Is Upward-Sloping (I