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InterviewSolution
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Which one is increasing function of price? |
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Answer» Supply Supply is increasing FUNCTION of price. The higher the price of a good, the more a firm is willing to PRODUCE and offer, hence, the supply function is UPWARD sloping. In fact, in the perfect competition market, the supply CURVE is the marginal COST curve. Increasing production is only profitable if the good can be sold at a higher price. |
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