Match the change in List-I with what it means or does in List-II:List…

Match the change in List-I with what it means or does in List-II:

List-I		List-II
(A)	Organisational innovation by a firm	(I)	The market supply curve shifts to the right
(B)	Rise in the wage rate of labour	(II)	The firm’s cost of production rises
(C)	Unit tax	(III)	The same levels of capital and labour now produce more units of output
(D)	Increase in the number of firms in the market	(IV)	A tax that the government imposes per unit sale of output

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A) - (III), (B) - (II), (C) - (IV), (D) - (I)

Each change in List-I either changes the firm’s cost or changes the number of firms, and so moves a supply curve.

List-I	List-II	Reason
(A) Organisational innovation by a firm	(III) The same levels of capital and labour now produce more units of output	The firm gets more output from the same inputs. Its MC falls.
(B) Rise in the wage rate of labour	(II) The firm’s cost of production rises	Labour is an input, so a higher wage raises cost.
(C) Unit tax	(IV) A tax that the government imposes per unit sale of output	The tax is charged on each unit sold.
(D) Increase in the number of firms in the market	(I) The market supply curve shifts to the right	More firms supply more at every price.

NCERT (2026-27): “4.5.1 Technological Progress Suppose a firm uses two factors of production – say, capital and labour – to produce a certain good. Subsequent to an organisational innovation by the firm, the same levels of capital and labour now produce more units of output. …”

“4.5.2 Input Prices A change in input prices also affects a firm’s supply curve. If the price of an input (say, the wage rate of labour) increases, the cost of production rises. …”

“Impact of a unit tax on supply A unit tax is a tax that the government imposes per unit sale of output. …”

“4.6 Market Supply Curve … It should be noted that the market supply curve has been derived for a fixed number of firms in the market. As the number of firms changes, the market supply curve shifts as well. Specifically, if the number of firms in the market increases (decreases), the market supply curve shifts to the right (left).”