which of the following reasons explains the upward sloping of supply curve in a competitive market?

  • A Ceteris paribus, marginal cost increase as output increases
  • B As new firms enter the market, factor price moves up
  • C Firms are in business to satisfy consumers
  • D Marginal cost often increases in a competitive market
  • E Firms are in business to produce goods

The correct answer is A. Ceteris paribus, marginal cost increase as output increases

No explanation given
Previous question Next question