If the Price of an Input Decreases,each Individual Firm's Marginal

question 76

Multiple Choice

If the price of an input decreases,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) upward; does not change
• D) upward; shifts to the left

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Definitions:

Dividends Declared

An announcement by a company's board of directors of a dividend payment to shareholders, indicating the amount and payment date.

Dividends Payable

A liability on the balance sheet representing the amount of dividends that a company owes to its shareholders but has not yet paid.

Stock Splits

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.