If the Long-Run Supply Curve Is Upward Sloping, It Indicates

question 201

Multiple Choice

If the long-run supply curve is upward sloping, it indicates that resource prices fall when

• A)production in the industry decreases in the long run.
• B)production in the industry increases in the long run.
• C)new firms enter the industry.
• D)short-run profits in the industry are positive.

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Definitions:

Manufacturing Overhead Budget

A financial plan that estimates the expected costs related to manufacturing overhead for a specific period.

Variable Overhead Rate

A financial metric that represents the costs that vary with production levels in manufacturing, calculated as variable overhead costs divided by a measure of activity.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, insurance, and salaries of certain employees.

Sales Budget

A financial plan that estimates future sales in terms of units and revenue.