The supply curve for oil slopes upward because additional quantities of oil can only be produced at higher cost.

Question

Quizplus · Accepted Answer

This statement is true. The cost of producing additional quantities of oil usually increases as reserves are depleted or harder-to-reach sources are tapped. As a result, suppliers will only be willing to supply more oil at higher prices to cover their increased costs, leading to an upward-sloping supply curve.

The Supply Curve for Oil Slopes Upward Because Additional Quantities