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.

Question

Quizplus · Accepted Answer

As technology improves, the marginal cost of production decreases, leading to a downward shift of the firm's marginal cost curve. This means that the firm can now produce more output at any given price level, resulting in an increase in supply.

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