Which of the Following Is the Reason Supply Curves Typically

question 193

Multiple Choice

Which of the following is the reason supply curves typically slope upward?

• A)Opportunity cost of production increases as quantity supplied increases.
• B)Supply increases as opportunity cost decreases.
• C)Price increases as supply decreases.
• D)Quantity supplied is unrelated to price.
• E)The income and substitution effects of a price change.

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Definitions:

Signaling Theory

A concept in economics and strategic management that addresses how parties communicate their qualities or intentions to others, often in situations where information asymmetry exists.

Quantity Of Labor

The total hours worked or the number of workers employed by a business or within an economy.

Contracting Services

The process of engaging an external company to provide services that could be performed by in-house staff.

Signaling View

An economic theory that suggests that education serves as a signal to employers about a potential employee's abilities.