ECON 262
1. What is the law of supply?
2. Explain why suppliers costs are opportunity costs -- that is, where do production costs come from exactly?
3. Now explain how #2 relates to increasing marginal opportunity costs and the upward sloping supply curve (law of supply).
4. Explain why Bob might be able to supply lemonade but not willing to supply it. Assume Bob is trying to make money by supplying lemonade to the market. Relate your answer to the concept of opportunity cost.
5. What questions do you still have about this material?