A ﬁrm's supply curve is upsloping because

Question

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The upsloping nature of a firm's supply curve is due to the fact that beyond a certain production level, the production costs of additional units of output will rise. This is due to the diminishing returns of factors of production, including labor and capital, which increase the cost of production as output expands. Therefore, a firm will only supply additional units of output at higher prices to cover the increased production costs. A, B, and C are not accurate reasons for the upsloping supply curve.

A ﬁRm's Supply Curve Is Upsloping Because