If Input Prices Rise as Industry Output Expands,then a Perfectly

question 24

Multiple Choice

If input prices rise as industry output expands,then a perfectly competitive firm's marginal cost and average cost curves will:

• A) shift upward.
• B) shift downward.
• C) not shift. As the firm increases production, however, costs increase as the firm moves upward to the right along these curves.
• D) not shift. As the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.