In Constructing a Short-Run Aggregate Supply Curve, What Would an Economist

question 60

Multiple Choice

In constructing a short-run aggregate supply curve, what would an economist assume is the goal of business?  

• A) to maximize sales revenue 
• B) to maximize profit 
• C) to maximize growth in sales 
• D) to minimize cost

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Definitions:

Opportunity Cost

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Opportunity Cost

The foregone benefit that would have been derived by an option not chosen.

Alternative Action

Potential different courses of action considered in a decision-making process.

Processed Further

A term used in cost accounting to describe materials or products that are subjected to additional operations or stages of processing beyond the initial production stage.