A supply curve shows the ________ of producing one more unit of a good or service.
A) producer surplus
B) consumer surplus
C) total benefit
D) marginal cost
E) marginal benefit to the producer

Question

Quizplus · Accepted Answer

The supply curve shows the marginal cost of producing one more unit of a good or service. The marginal cost is the additional cost of producing one more unit, and it is reflected in the supply curve. The producer will only produce an additional unit if the price they receive is greater than the marginal cost of production. Therefore, the supply curve is a crucial tool for understanding the behavior of producers in a market.

A Supply Curve Shows the ________ of Producing One More