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प्रश्न
How does an increase in the price of an input affect the supply curve of a firm?
उत्तर
An increase in the price of an input increases the cost of production, which in turn increases the marginal cost of the firm. Consequently, the MC curve will shift upward to the left and the supply curve will also shift leftward upward. Therefore, an increase in the input price negatively affects the supply of the firm.
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संबंधित प्रश्न
How are the equilibrium price and quantity affected when both demand and supply curves shift in the same direction?
Suppose the demand and supply curves of salt are given by:
qD = 1,000 − p qS = 700 + 2p
(a) Find the equilibrium price and quantity.
(b) Now, suppose that the price of an input that used to produce salt has increased so, that the new supply curve is
qS = 400 +2p
How does the equilibrium price and quantity change? Does the change conform to your expectation?
(c) Suppose the government has imposed a tax of Rs 3 per unit of sale on salt. How does it affect the equilibrium rice quantity?
What is the supply curve of a firm in the short run?
What is the supply curve of a firm in the long run?
How does technological progress affect the supply curve of a firm?
How does the imposition of a unit tax affect the supply curve of a firm?
How are the equilibrium price and quantity affected when demand and supply curves shift in opposite directions?
