Question

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

A. prices rise
B. equilibrium is achieved
C. costs of production fall
D. there is a population increase

Answer 1

When costs of production fall, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

Step-by-step explanation:

When costs of production fall, a firm will tend to supply a larger quantity at any given price for its output, and the supply curve will shift to the right. When costs of production fall, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

This is because when the costs of production decrease, firms are able to produce at a lower cost, making it more profitable for them to supply a higher quantity of goods. For example, if a firm finds a cheaper supplier for raw materials, it can produce more goods without increasing its costs significantly.