Why Is the AS Curve Upward-Sloping

question 78

Multiple Choice

Why is the AS curve upward-sloping?

• A)Because firms will produce more if prices are higher,despite no increase in profits.
• B)Because firms will experience higher profits at higher prices and will therefore produce more.
• C)Because aggregate demand rises with higher prices.
• D)Because the LAS curve is also upward sloping.

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Definitions:

Optimal Sequence

The most efficient order or arrangement of actions, steps, or items to achieve a desired outcome or objective.

Makespan

The total time needed to complete a set of tasks, from start to finish, under specific conditions.

Idle Time

Periods when resources, such as employees or machines, are not productive, often due to a lack of work or inefficiency.

Machine 1

A term referring to a specific machine within a series or factory setup, usually designated as the first in a sequence or category.