Which of the Following Is Not Assumed to Be Constant

question 130

Multiple Choice

Which of the following is not assumed to be constant along a short-run aggregate supply curve?

• A)the actual price level
• B)the state of technology
• C)the size and quality of the labor force
• D)the expected price level
• E)the size and quality of the capital stock

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Definitions:

Purely Competitive Firm

A market structure where firms are price takers and sell homogeneous products with many buyers and sellers, leading to perfect competition.

Economic Profit

The contrast between a company's overall receipts and its full charges, considering both palpable and inferred costs.

Long Run

A time period in economics during which all factors of production and costs are variable, allowing for all adjustments to be made to achieve an equilibrium.

Competitive Increasing-cost Industry

An industry in which the entry of new firms causes the input prices to increase, leading to upward-sloping supply curves for the firms.