If a competitive firm experiences a shift in costs of production that decreases marginal costs at all levels of output,
A. expanding output levels at any given price will be profitable.
B. producing less at any market price will off-set marginal cost .
C. the firm’s marginal cost curve will shift to the left.
D. the firm’s demand curve will also shift to the left.
Answer:A
If a competitive firm experiences a shift in costs of production that decreases marginal costs at all levels of output,
A. expanding output levels at any given price will be profitable. B. producing less at any market price will off-set marginal cost . C. the firm’s marginal cost curve will shift to the left. D. the firm’s demand curve will also shift to the left.
Explanation: 48. If the price that a firm charges is higher than its ________________ cost of production for that quantity produced, then the firm will earn profits.