The Long-Run Aggregate Supply Curve Is Determined by All of the Following

question 94

Multiple Choice

The long-run aggregate supply curve is determined by all of the following EXCEPT

• A)aggregate demand.
• B)endowments.
• C)technology.
• D)the amount of resources that exist in the economy.

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Definitions:

Total Cost

The combined financial outlay for producing goods or services, covering both unchanging and varying expenses.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Inelastic Resource Supply

A condition where the supply of a resource does not significantly change in response to price changes.

Total Variable Costs

The sum of all costs that vary with the level of output or production, such as materials and labor, as opposed to fixed costs which remain constant regardless of the level of production.