What does the height of the supply curve show
A)the maximum cost a seller will pay to produce a product
B)the price a buyer can expect to pay for a certain quantity of a product
C)the maximum amount buyers are willing to pay for a product
D)the cost to the producer of the last unit sold

Question

Quizplus · Accepted Answer

The height of the supply curve shows the cost to the producer of the last unit sold. The quantity supplied is shown on the horizontal axis, while the price is shown on the vertical axis. The higher the price, the more profitable it is for the producer to supply a higher quantity of the product. Thus, the height of the supply curve shows the cost to the producer of supplying each unit at a given quantity, which is the marginal cost.

What Does the Height of the Supply Curve Show