The supply curve is upward sloping because of
A) decreasing marginal cost.
B) increasing marginal benefit.
C) decreasing marginal benefit.
D) increasing marginal cost.
E) increasing total cost.

Question

Quizplus · Accepted Answer

The supply curve is upward sloping because of increasing marginal cost. As output increases, firms must incur higher production costs which causes the supply curve to slope upwards.

The Supply Curve Is Upward Sloping Because of