Which of the following will cause equilibrium output in a market to increase?
A) A decrease in firms' variable costs.
B) An outward shift of the demand curve.
C) Entry of more firms into the market.
D) All of the above.

Question

Quizplus · Accepted Answer

All three options can cause equilibrium output to increase. 
A decrease in firms' variable costs would allow them to produce more at the same price, leading to an increase in output. 
An outward shift of the demand curve would mean consumers are willing and able to purchase more at any given price, leading to an increase in output. 
Entry of more firms into the market would increase competition and potentially lead to lower prices, allowing firms to sell more output and increase overall production.

Which of the Following Will Cause Equilibrium Output in a Market