If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have

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Lorelei Rodriguez

Business

29 December, 05:02

If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have

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Makaila Jefferson · Answer 1

If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have a positive slope. From the equation that the profit per unit is equal to price minus by the cost per unit meaning that as prices rises and more output is produced. In doing so, as the effect of more output corresponding to an increase in price with a slope rising to the right depends on the response of the costs.