Answer:Law of increasing opportunity cost says that as the production increases the opportunity cost of per additional unit produced also increases.
As per principle of increasing opportunity cost whenever there is increase in production quantity then the opportunity cost of utilizing resources in additional production is higher. Now to cover this increased opportunity cost, suppliers need to charge higher price. This increased price for increased supply makes the supply curve upward sloping.
Step-by-step explanation:
Law of increasing opportunity cost says that as the production increases the opportunity cost of per additional unit produced also increases.
As per principle of increasing opportunity cost whenever there is increase in production quantity then the opportunity cost of utilizing resources in additional production is higher. Now to cover this increased opportunity cost, suppliers need to charge higher price. This increased price for increased supply makes the supply curve upward sloping.