The reasons why a competitive firm's short-run supply curve is upward sloping are

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The law of diminishing marginal returns states that as a firm increases the amount of a variable input, holding all other inputs constant, the marginal product of the variable input eventually decreases. This means that each additional unit of the input produces less output than the previous unit. As a result, the firm's costs increase as it produces more output in the short run, causing the firm's short-run supply curve to slope upward. Additionally, a competitive firm will choose to produce where marginal revenue equals marginal cost in order to maximize profits. As output increases, the firm's marginal costs increase, and so it will only be willing to supply additional units of output at a higher price. This also contributes to the upward sloping short-run supply curve.

The Reasons Why a Competitive Firm's Short-Run Supply Curve Is