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. |