If a firms cost of raw material increases then _________.

market price of the final product will also increase

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equilibrium level of quantity also increases

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marginal cost curve will shift upward

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marginal cost curve will shift downward

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Solution

The correct option is A marginal cost curve will shift upward
Marginal costs are impacted by direct costs, thus if a direct cost such as the price of raw materials increases then the MC curve will shift upwards.

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If a firms cost of raw material increases then _________.

The correct option is A marginal cost curve will shift upwardMarginal costs are impacted by direct costs, thus if a direct cost such as the price of raw materials increases then the MC curve will shift upwards.

The correct option is A marginal cost curve will shift upward
Marginal costs are impacted by direct costs, thus if a direct cost such as the price of raw materials increases then the MC curve will shift upwards.