If the price of an input increases, each individual firm's ________ shifts upward and the ________ shifts to the left.
A) marginal revenue curve; marginal cost curve
B) marginal cost curve; industry supply curve
C) demand curve; industry supply curve
D) supply curve; marginal cost curve

Question

Quizplus · Accepted Answer

When the price of an input increases, it becomes more expensive for firms to produce goods, leading to an increase in the marginal cost of production. This causes the marginal cost curve for each firm to shift upward. As a result, at any given price, firms will supply less, leading to a leftward shift of the industry supply curve.

If the Price of an Input Increases, Each Individual Firm's