Which of the following is true if marginal costs increase at a slow rate as output increases?

A) The short-run aggregate supply curve is relatively steep.
B) The short-run aggregate supply curve becomes vertical.
C) The short-run aggregate supply curve is relatively flat.
D) The long-run aggregate supply curve becomes horizontal.
E) The long-run aggregate supply curve becomes downward sloping.

Marginal Costs

The additional cost incurred from producing one more unit of a good or service.

Aggregate Supply Curve

The aggregate supply curve represents the total output of goods and services that firms in an economy are willing and able to produce at different price levels, holding all else constant.

Output Increases

A rise in the quantity of goods or services produced by an economy or firm over a specific period.