Previous question is:
1) The supply curve is upward sloping because at higher prices ________
a) Customers are willing to pay more for the good.
b) Firms perceive that the marginal cost of producing the good has increased.
c) Firms perceive that the marginal benefit of producing the good has increased.
d) Customers switch to substitute goods.
Student Log for the following question:
2) Please explain your rationale for your answer to the previous question.3
Student answers can be sorted by answer choice, time spent on Prelecture, or simply answer length so that patterns and trends in understanding can be easily identified.Problems »
|Student||Answer||Anwser to previous question||Time on Prelecture|
|Stew Dent||I don't know||1||00:42|
|Adam Smith||The perception that the marginal benefit of producing the good has increased is what causes the upward slope within the supply curve - in other words, the higher price needed to cover the higher marginal cost of production slopes the curve upward. Higher marginal costs are a result of diminishing returns to variable factors.||3||11:53|