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.

Question

Quizplus · Accepted Answer

The upward slope of the supply curve is due to increasing marginal costs. As production increases, each additional unit becomes more expensive to produce. This means that producers require a higher price to cover the increasing cost of production, hence the upward slope of the supply curve. Increasing total costs or fixed costs alone do not explain the upward slope of the supply curve.

The Supply Curve Is Upward-Sloping (I