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:

Large Corporations

Substantial business entities with significant operational scale, usually involving multi-national operations and a large number of employees.

Jurisdiction

The legal authority granted to a court or governmental entity to make decisions and enforce laws.

Diversity Jurisdiction

Federal courts' authority to hear lawsuits involving parties from different states or countries, based on their diversity of citizenship.

Corporation

A firm that is authorized by statute to act as a legal entity separate and distinct from its owners (shareholders).