If retailers' marginal cost from providing product- specific services for a new smart television is $50, if retailers offer the product- specific services for the television, the market ________will________

Question

Quizplus · Accepted Answer

The marginal cost of providing product-specific services for the new smart television is $50. If the retailers offer the product-specific services, their costs will increase by $50 for every unit of the television they sell. This will result in a decrease in the quantity supplied at every given price level, thereby shifting the supply curve to the left. Hence, the correct answer is A.

If Retailers' Marginal Cost from Providing Product- Specific Services for a New