Question

Why does the supply curve slope upward? To answer this question, use the choices below to identify the characteristics of an upward-sloping supply curve. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. check all that apply Increasing opportunity costsunanswered Increasing marginal costsunanswered Diminishing marginal utilityunanswered A decrease in resource pricesunanswered An increase in resource pricesunanswered Increasing labor productivity

Answer 1

Answer: Increasing marginal costs

Explanation:

As production increases, so does the marginal cost of production because the marginal cost refers to the additional cost of producing more goods and services.

In order for producers to offer a higher quantity of goods and services therefore, they need to charge a higher price so that they can recover these marginal costs being expended to produce more goods and services.