Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of the supply curve.

Question

Quizplus · Accepted Answer

Any change in the factors affecting production like changes in technology, input prices, taxation policies or government regulations can affect a firm's ability to produce goods and services with the same amount of resources. This will lead to a shift in the supply curve as the quantity supplied at each price level changes. Therefore, the statement "Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of the supply curve" is true.

Anything That Changes the Amount a Firm Can Produce with a Given