The Aggregate Supply Curve Is Usually Assumed to Get Progressively

question 82

Multiple Choice

The aggregate supply curve is usually assumed to get progressively steeper at relatively higher levels of output because

• A)of increasing factor prices.
• B)of rising competition among price setters.
• C)of diminishing marginal productivity of the factors of production.
• D)of increasing productivity of the factors of production.
• E)of excess capacity at higher levels of output.

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Definitions:

Book Value

The net asset value of a company calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Market Value

The existing rate at which an asset or service can be sold or acquired.

Revenue Expenditure

Expenses incurred during the normal course of business that are expected to be consumed within the current accounting period.

New Equipment

Capital assets recently acquired by a company for use in its operations, potentially enhancing productivity or efficiency.