The Short-Run Aggregate Supply Curve Is

question 49

Multiple Choice

The short-run aggregate supply curve is:

• A) upward-sloping.
• B) downward-sloping.
• C) horizontal.
• D) vertical.

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Definitions:

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Efficient

The characteristic of maximizing productivity with minimal waste, effort, or expense.

Inefficient

Describes a market or economy in which there are missed opportunities: some people could be made better off without making other people worse off.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and often higher prices for consumers.