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Question : A firm’s supply curve is on an upward slope because:-
A: The production costs of additional units of output will rise beyond a point
B: Consumers see a positive relationship between price and quality
C: Expansion of production leads to the use of inferior inputs

Option 1: A only 

Option 2: C only

Option 3: B only

Option 4: A, B and C all


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: C only


Solution : The perception that the marginal benefit of producing the good has increased is what causes the supply curve's upward slope - in other words, the higher price required to cover the higher marginal cost of production slopes the curve upward.
Expansion of production leads to the use of inferior inputs.
Hence c is the correct answer

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