If the Price of an Input Decreases, Each Individual Firmʹs

question 215

Multiple Choice

If the price of an input decreases, each individual firmʹs 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

---

Definitions:

Directive Approach

A therapeutic strategy where the therapist provides explicit suggestions or guidance to clients about how to think or behave.

Selective Abstraction

A cognitive distortion that involves focusing only on certain negative details of an event while ignoring other positive information.

Dichotomous Thinking

A cognitive distortion involving seeing situations in two categories, such as all good or all bad, without acknowledging the complexity or the spectrum in between.

Overgeneralizing

The cognitive distortion of applying one experience's outcome to others, even when it is not applicable or warranted.