Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 1 - Limits, Alternatives, and Choices - Problems - Page 23: 6

Answer

The MC curve will shift down, while the optimal amount of pizza increases.

Work Step by Step

When cheese becomes cheaper, MC decreases, which graphically moves the curve downwards. Because MC shifted down and MS did not move, the new intersection between these two curves now moved to the right, meaning that the optimal amount produced should increase.
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