The Aggregate Supply Curve Is The

question 45

Multiple Choice

The aggregate supply curve is the:

• A)vertical sum of suppliers' supply functions.
• B)horizontal sum of consumers' supply functions.
• C)supply side of the market for sand and gravel.
• D)horizontal sum of suppliers' supply functions.

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Definitions:

Opportunity Cost

The cost of foregoing the next most desirable choice when a decision is made.

Out-of-pocket Cost

Direct payments made by individuals for goods or services, not reimbursed by insurance or other means.

Marginal Cost

Marginal Cost is the cost incurred by producing one more unit of a product or service.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service, a critical concept in economic theory related to the allocation of resources.