A Firm's Supply Curve Is Upward Sloping Because

question 41

Multiple Choice

A firm's supply curve is upward sloping because:

• A)the expansion of production necessitates the use of qualitatively inferior techniques.
• B)mass production economies are associated with larger levels of output.
• C)consumers envision a positive relationship between price and quality.
• D)beyond some point the production costs of additional units of output will rise.

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Definitions:

Salary Allowances

Amounts allocated in addition to base salary, often to cover expenses such as housing, transportation, or for specific purposes set by the employer.

Capital Balance

The amount of money that a partner in a business has contributed or owns in the capital account.

Salary Allowances

Fixed amounts over and above basic salaries given to employees to meet specific requirements such as housing, travel, or medical expenses.

Capital Decrease

A reduction in the amount of equity owned by shareholders or owners of a company, often resulting from losses or distribution of dividends.