If the price of an input decreases,each individual firm's marginal cost curve shifts ________ and the industry supply curve ________.

Question

Quizplus · Accepted Answer

When the price of an input decreases, each individual firm's marginal cost curve shifts downward, which then shifts the industry supply curve to the right. This is because the lower input cost enables firms to produce more output at every price level, leading to a greater quantity supplied at each market price.

If the Price of an Input Decreases,each Individual Firm's Marginal