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

question 167

Multiple Choice

If the price of an input increases, each individual firm's marginal cost curve shifts ________ and the industry supply curve ________.

• A) downward; shifts to the left
• B) downward; shifts to the right
• C) up; does not change
• D) up; shifts to the left

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Definitions:

Net Income

The net income of a business following the subtraction of all costs and taxes from its total revenue.

Capital Balances

This represents the amount of funds that shareholders have invested in a company, often reflected in the equity section of a balance sheet.

Partner's Equity

The interest or ownership a partner has in a partnership, representing their claim on the assets after liabilities are settled.