Answer to Question #73000 in Microeconomics for emma

Question

The following are proper explanations for why the Supply Curve has a positive slope, EXCEPT:

Question options:

As price per unit increases, then profit per unit will also increase for sure, motivating more production.


The supply curve has a positive slope due to increasing marginal cost of production.


As price per unit increases, it will motivate the least efficient producers to enter the market.


As production increases, the producer will be forced to charge a higher price to cover the higher marginal cost of production for the extra units produced.

Answer 1

Yes, indeed, the supply curve has a positive tendency, primarily due to the increase in the cost of production of additional products at constant production capacity. Also, the Offer Scale, as well as the supply curve, is based on the assumption of "under other identical conditions." We find that is hidden under this assumption. As in the case of the demand curve, this assumption conceals non-price factors that influence the supply.