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

Question

Quizplus · Accepted Answer

A reduction in production costs due to an improvement in technology will result in a decrease in the minimum price the firm is willing to accept for a given quantity of output. This will lead to an increase in the quantity supplied of the good, which is shown by a movement along the supply curve. At the same time, the firm can produce more at each price, which results in an increase in supply or a rightward shift of the supply curve. Therefore, all of the given options are true.

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