Introduction to Economics 1 Deneme Sınavı Sorusu #730532

Which of the followings can be one of the factors causing the market supply shift rightward in the short run?


An increase in production costs

A decrease in production costs

An increase in marginal costs

A decrease in marginal costs

An increase in total cost


Yanıt Açıklaması:

The factors that shift the MC curve cause the market supply curve to shift. In the short run, basically two factors can cause the market supply shifts to the rightward:
(i) A decrease in production costs shifts the market supply curve rightward. For example, a technological innovation which leads to a rise in labor productivity decreases the unit labor cost and causes the market supply curve to shift to the right.
(ii) In the long run, an increase in the number of firms, i.e., new firms entering the industry, shifts the market supply curve rightward.

The correct answer is B.

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