The height of the supply curve at any given quantity of coal shows the:
A)value to the consumer of the last unit of coal bought
B)consumer's willingness to pay for coal at each quantity
C)cost to the producer of the last unit of coal sold
D)total quantity of coal exchanged in the market

Question

Quizplus · Accepted Answer

The height of the supply curve at any given quantity of coal shows the cost to the producer of the last unit of coal sold. This is because the supply curve represents the minimum price at which producers are willing to sell a given quantity of coal. The higher the cost of producing the coal, the higher the price that producers need to receive in order to justify production and supply at a given quantity level. Therefore, the height of the supply curve reflects the marginal cost of production for the producer at each quantity level.

The Height of the Supply Curve at Any Given Quantity