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Question
The supply curve is upward sloping because __________.
Options:
A .  costs increase when the price increases
B .  quantity demanded decreases when price increases
C .  As the price increases, suppliers can justify producing at higher marginal costs
D .  All of the above
Answer: Option C
:
C
The supply curve is upward sloping because as price increases, suppliers can justify producing at higher marginal costs as long as MC < P.

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