Question

If a U.S. company operates within a competitive environment and chooses to offshore part of its production process, the resulting change in the firm’s costs should shift the ______________ curve for its product ___________________, thus _____________ the price of the product being produced.

Answer 1

Supply, rightward and lowering, are the right answers.

Step-by-step explanation:

The offshore production process will affect the supply side, not the demand side so the supply curve will change and it will shift rightwards. The rightwards shift in the supply curve shows that quantity supplied has increased and thus, an increase in quantity will result in the decrease of prices for the commodity.