Final answer:
If a firm expects the price of a product they produce to rise in the future, they are likely to decrease current production to maximize future profits. Lower production costs can also lead to larger supply, which is shown by a shift to the right of the supply curve. However, this decision is subjected to several factors such as market conditions, consumer demand, and the firm's capacity.
Step-by-step explanation:
If a firm anticipates the price of a good they produce to rise in the future, they are likely to decrease the amount of the good they put on the market now. This is due to the expectation of future profits. As the firm is more motivated to produce output when its profits increase, they would hold back some goods to sell in the future at the higher anticipated price, further increasing their profit.
A lower cost of production, which can increase profits, may also lead a firm to supply a larger quantity at any given price for its output. This is typically illustrated by the supply curve shifting to the right.
However, it's imperative to remember that any form of future pricing and production decisions is subject to change based on market conditions, consumer demand and firm's capacity to produce and store goods.
Learn more about Supply and Demand