The Supply Curve Slopes Upward Because Producers' Cost Per Unit

question 45

Multiple Choice

The supply curve slopes upward because producers' cost per unit eventually

• A)decreases as more units are sold.
• B)remains unchanged as more units are sold.
• C)increases as more units are sold.
• D)will be subsidized by the government.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business that are not directly tied to the production of goods or services.

Current Assets

Resources anticipated to be turned into cash, liquidated, or utilized within a 12-month period or over the length of the business's operational cycle, whichever duration is more extended.

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be converted to cash in the short term, such as buildings, machinery, and equipment.

Amortization Expense

The portion of the cost of a fixed asset deducted from revenue over its useful life for accounting purposes.