The supply curve for oil slopes upwards because additional quantities of oil can only be produced at higher cost.

Name: The supply curve for oil slopes upwards because additional quantities of oil can only be produced at higher cost.
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Question

Quizplus · Accepted Answer

This is due to the law of diminishing returns - as more and more oil is produced, it becomes harder and more expensive to extract the remaining oil. Therefore, the cost of producing additional quantities of oil increases, causing the supply curve to slope upwards.

The Supply Curve for Oil Slopes Upwards Because Additional Quantities