When technology improves,the firm's marginal cost curve shifts
A)Upward,and supply increases.
B)Downward,and supply increases.
C)Upward,and supply decreases.
D)Downward,and supply decreases.

Question

Quizplus · Accepted Answer

When technology improves, the firm can produce more with the same amount of inputs, which leads to a decrease in marginal cost. As a result, the marginal cost curve shifts downward, and the firm is able to supply more at each price level, increasing supply.

When Technology Improves,the Firm's Marginal Cost Curve Shifts