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The short-run aggregate supply curve is upward sloping because
Markup
The amount added to the cost price of goods to cover overhead and profit.
Manufacturing Cost
The total expense incurred in the process of producing goods, including materials, labor, and overhead.
Selling Prices
The amount of money charged for a product or service, determined by cost, competition, and market demand.
Unit Product Cost
The sum of materials, labor, and overhead expenses divided by the quantity of units manufactured.
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