The Short-Run SAS Curve Is Positively Sloped Because as

question 15

Multiple Choice

The short-run SAS curve is positively sloped because as

• A)AD increases,mark-ups are increased,indicating variable mark-up pricing.
• B)SAS increases,mark-ups are increased,indicating variable mark-up pricing.
• C)AD increases,raw materials prices set by auction tend to rise.
• D)A and C are both correct.

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Definitions:

Investment Opportunity

An investment avenue that has the potential to yield returns, involving the allocation of resources in expectation of future gains.

Minimum Required Rate

This is the lowest return that investors are willing to accept for investing in a project or security, often used in capital budgeting to assess potential investments.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the net profit of the investment by its cost.

Operating Assets

Assets that are used for the day-to-day functioning of a business and are expected to generate economic benefits.