The Aggregate Supply Curve Is

question 92

Multiple Choice

The aggregate supply curve is:

• A) always vertical.
• B) always horizontal.
• C) a summation of individual supply curves and is always upward sloping.
• D) horizontal, vertical and upward sloping.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Marginal Costs

The hike in total financial outlay required for the fabrication of one additional unit of a product or service.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor expenses.

Average Total Cost

The total cost of production divided by the quantity of output produced.