If the resource prices faced by a firm rise,the result is a(n)
A) decrease in supply
B) increase in supply
C) decrease in demand
D) increase in quantity demanded
E) decrease in quantity supplied

Question

Quizplus · Accepted Answer

If the resource prices faced by a firm rise, it becomes more expensive for the firm to produce its goods or services. As a result, the firm's marginal costs will increase, and its supply curve will shift to the left, resulting in a decrease in supply.

If the Resource Prices Faced by a Firm Rise,the Result