Question

Due to technological progress, in which direction will a firm's supply curve shift?

• A. Leftward
• B. Rightward
• C. Upward
• D. None of these

Hint:

Technological progress reduces production costs, leading to an increase in supply, which shifts the supply curve to the right.

Answer 1

The Correct Option is B

Step 1: Understanding technological progress and supply curve.
Technological progress usually leads to more efficient production processes, which in turn reduces the cost of production. This results in an increase in supply, causing the supply curve to shift to the right.

Step 2: Analyzing the options.
(A) Leftward: This would happen if there were a decrease in supply, for example, due to higher costs of production.
(B) Rightward: Correct. Technological progress typically shifts the supply curve to the right, indicating an increase in supply.
(C) Upward: This is not typically how supply curves are described. The supply curve generally shifts to the right or left.
(D) None of these: This is incorrect, as the correct answer is (B) Rightward.

Step 3: Conclusion.
The correct answer is (B) Rightward, as technological progress increases the supply, shifting the curve to the right.