An improvement in a firm's technology that reduces its production costs will result in a(n):

Question

Quizplus · Accepted Answer

An improvement in technology that reduces a firm's production costs will result in an increase in supply. This is because the firm can now produce the same quantity of goods at a lower cost, leading to a decrease in the marginal cost and an increase in the quantity supplied at every price level. Therefore, the supply curve shifts to the right.

An Improvement in a Firm's Technology That Reduces Its Production