Which of the Following Statements About the Supply Curve Is

question 209

Multiple Choice

Which of the following statements about the supply curve is TRUE?

• A) As the price of a good rises, it becomes profitable to sell the higher-cost good.
• B) As the price of a good rises, it becomes profitable to sell only the lower-cost good.
• C) All sellers are willing to sell a good only when the price is very high.
• D) All sellers are able to sell a good only when the price is very low.

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Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good varies as production volume changes.

Total Cost

Total Cost encompasses all expenditures incurred by a business in the production of goods or services, including fixed and variable costs.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.

Total Variable Cost

The sum of all costs that vary with the level of output produced by a company.