A firm's marginal cost is the increase in its total cost divided ...

[burton19126]

A firm's marginal cost is the increase in its total cost divided by the increase in its
 
  A) quantity of labor.
  B) average cost.
  C) output.
  D) average revenue.

Question 2

Give examples of factors that decrease short-run aggregate supply. Which way does the SAS curve shift?
 
  What will be an ideal response?

[jgranad15]

Answer to Question 1

C

Answer to Question 2

Aggregate supply decreases if potential GDP decreases. In addition, cost hikes such as a rise in the money wage rate or the price of oil, decreases short-run aggregate supply. Whenever short-run aggregate supply decreases, the SAS curve shifts leftward.

[burton19126]

Thanks for the timely response, appreciate it

[TheNamesImani]

Gracias!