The Supply Curve Slopes Up and to the Right Because

question 67

Multiple Choice

The supply curve slopes up and to the right because:

• A) due to steady opportunity costs, producers feel that people will buy more if they charge a higher price.
• B) due to efficiencies, producers feel that people will buy more if they charge a higher price.
• C) due to increasing opportunity costs, producers must charge more to produce additional units in order to cover their costs.
• D) The supply curve actually slopes down and to the right.

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Definitions:

Target Profit

The profit a company aims to achieve for a specific period.

Unit Sales

The quantity of items sold by a company during a specific period, not accounting for returns or refunds.

Break-Even Sales

The amount of revenue required to cover both the variable and fixed costs of a business, resulting in neither profit nor loss.

Margin Of Safety

The difference between actual sales and sales at the break-even point, providing a cushion that measures the business's ability to withstand sales fluctuations.