A simple model of a firm describes it as an entity that buys - (for example, labor) and sells - (goods and services). A firm's input prices, which affect costs, are generally - in the short run, while a firm's output prices, which affect revenue, are -. Therefore, an increase in the short-run price level raises revenue - than costs, so firms produce more in the short run. Consequently, the SRAS curve slopes upward.
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A simple model of a firm describes it as an entity that buys - (for example, labor) and sells - (goods and services). A firm's input ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.