If a U.S.company operates within a competitive environment and chooses to offshore part of its production process,the resulting change in the firm's costs should shift the ______________ curve for its product ___________________,thus _____________ the price of the product being produced.
A) supply; leftward; lowering
B) supply; rightward; raising
C) demand rightward; raising
D) supply; rightward; lowering

Question

Quizplus · Accepted Answer

Offshoring part of the production process typically reduces a company's production costs, allowing it to supply more at each price level. This shifts the supply curve rightward, which, according to supply and demand theory, lowers the price of the product.

If a USCompany Operates Within a Competitive Environment and Chooses to Offshore