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ngoc bakes muffins that he sells at the local farmer's market. if he purchases a new convection oven that reduces the costs of baking muffins, the a. demand for ngoc's muffins will increase. b. demand for ngoc's muffins will decrease. c. supply of ngoc's muffins will decrease. d. supply of ngoc's muffins will increase

Answer :

ngoc bakes muffins that he sells at the local farmer's market. if he purchases a new convection oven that reduces the costs of baking muffins, the supply of ngoc's muffins will increase.

A firm's earnings increase if its production expenses decrease while the costs of the goods or services it produces stay constant. A company is more driven to generate output (goods or services) when its earnings rise since the more it produces, the more profit it will make. Therefore, a company will often supply a higher amount at any given price for its products when production costs decline.

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