The supply curve of a producer, whose costs vary continuosly with output will be:

Question

Quizplus · Accepted Answer

The positively sloped portion of the marginal cost curve represents the point where the producer's supply curve intersects with the marginal cost curve. This is because as the producer increases output, their costs increase as well, represented by the upward slope of the marginal cost curve. Therefore, the supply curve will also be positively sloped in this portion. Choices A and B are incorrect because a straight line, vertical or horizontal, would not accurately represent the producer's changing costs with output. Choice D is incorrect because the negatively sloped portion of the marginal cost curve represents diminishing returns and is not indicative of the producer's supply behavior.

The Supply Curve of a Producer, Whose Costs Vary Continuosly