The Underlying Reason for the Upward Sloping Nature of the Supply

question 38

Multiple Choice

The underlying reason for the upward sloping nature of the supply curve is that

• A)the production of most goods comes with increasing marginal benefits.
• B)the production of most goods comes with increasing marginal costs.
• C)the consumption of most goods comes with decreasing marginal utility.
• D)the consumption of most goods comes with increasing marginal utility.

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Definitions:

Profit Sharing

An incentive program that grants employees a share in the company's profits as part of their compensation.

Expected Profits

The anticipated financial gain from an investment or business activity, calculated by multiplying possible outcomes by their probabilities and summing the results.

Cost Function

Function relating cost of production to level of output and other variables that the firm can control.

Profit Sharing

A company policy or agreement that distributes a portion of its profits among employees, typically based on their performance or salary.