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"The law of suppy results from the general tendency fro the marginal cost of producing a good or service to increase as the quantity produced increases
"The law of suppy results from the general tendency fro the marginal cost of producing a good or service to increase as the quantity produced increases." So why as the quantity produced increases, the marginal cost increases? Why the supply curve is also a minimum-supply-price curve?
Expert Solution
The supply of the curve is positively related to the marginal cost of production. Marginal cost in addition to the total cost with the production of each unit of output. The increase in output increases the marginal cost due to the fall in the marginal productivity of labor which makes the labor inefficient. As inefficiency grows, it imposes a cost on the producer. The supply curve is also a minimum supply price curve as it shows the minimum price that sellers are willing to charge for each unit of their product in the market.
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