The Short-Run Supply Curve Slopes Up Because

question 26

Multiple Choice

The short-run supply curve slopes up because:

• A) profits increase at higher price levels.
• B) productivity increases at higher price levels.
• C) wages increase at higher output in the short run.
• D) resource costs increase at higher price levels.

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Definitions:

Machine Time

The scheduled or actual time that a machine is set to operate or is operating, usually relating to production processes.

Total Cost Concept

An approach in accounting that considers all costs related to the production of a product, including direct, indirect, fixed, and variable costs.

Rate of Return

The Rate of Return (RoR) is a financial metric used to measure the profitability of an investment, representing the percentage of profit or loss relative to the investment's original cost.

Variable Direct Materials Cost

Refers to the fluctuating cost of raw materials that directly goes into producing a product, changing as the volume of production varies.