Final answer:
The statement is false because firms consider various factors that affect supply and profitability, including costs of production, technology, and government policies, which influence their supply curve.
Step-by-step explanation:
The statement that current changes in the business environment tend to focus the firm on factors related to the production of its product or provision of its service to the ultimate consumer is false. Firms are not solely focused on the production process but also on a variety of factors that can affect supply and subsequently profitability – which includes the cost of inputs, technological advancements, and government policies among others.
When a firm faces lower costs of production and the selling prices remain the same, profits tend to go up. This increases the firm's willingness to produce more, which can be depicted by a rightward shift in the supply curve. Furthermore, factors such as changes in the cost of inputs, natural disasters, new technologies, and government decisions also affect the cost of production and influence the quantity supplied.