The supply curve slopes upward because producers' cost per unit eventually

Question

Quizplus · Accepted Answer

As more units are produced, the cost per unit increases due to factors such as higher input costs or the need to invest in additional resources to increase production volume. This results in a higher price necessary to cover the increased costs, leading to an upward sloping supply curve. Option A is incorrect because a decrease in cost per unit would result in a downward sloping supply curve. Option B is inaccurate because the cost per unit may not remain unchanged with increased output. Option D is also incorrect because the government subsidy may affect the cost structure but not necessarily the slope of the supply curve.

The Supply Curve Slopes Upward Because Producers' Cost Per Unit