Which of the following statement (s) is/are correct?

Statement 1: An organisational innovation shifts the supply curve of the firm to the left.

Statement 2: An increase in the input prices causes a shift in the supply curve to the right.

None of the given statement is correct.

The correct answer is Option 4: None of the given statement is correct.

Statement 1: Incorrect

• Organizational innovation (e.g., better management, improved logistics, or efficient work processes) generally reduces production costs and makes firms more efficient.
• A decrease in production costs allows firms to produce more at the same price, leading to a rightward shift in the supply curve.
• Since the statement says the supply curve shifts to the left, it is incorrect.

Statement 2: Incorrect

• An increase in input prices (e.g., higher wages, costlier raw materials) raises production costs, making production more expensive.
• As a result, firms reduce the quantity they are willing to supply at the same price, causing a leftward shift in the supply curve.
• Since the statement says the supply curve shifts to the right, it is incorrect.