The short-run supply curve slopes upward because producers must be compensated for rising marginal costs.

Question

Quizplus · Accepted Answer

In the short run, as production increases, marginal costs typically increase due to factors such as overtime pay for workers and the inefficiencies of operating beyond optimal capacity, necessitating higher prices to cover these rising costs, which is why the short-run supply curve slopes upward.

The Short-Run Supply Curve Slopes Upward Because Producers Must Be