Assume that as the firms in a perfectly competitive industry expand ou

Assume that as the firms in a perfectly competitive industry expand output, the prices of productive inputs increase.

All else constant, this would cause the individual firms’ marginal cost curves to ________ and the market supply curve to become ________. A) shift down; flatter
B) shift down; steeper
C) shift up; flatter
D) shift up; steeper

ANSWER

D