if a firm faces ________________________ while the prices for the output the firm produces remain unchanged a firms profits will increase higher demand lower costs of production equilibrium a shift in demandWhy would labor be treated as a variable cost? they are costs incurred in the act of producing that will decrease with quantity produced they are made before production starts and vary according to the specific line of business labor costs are an input cost that firms are unable to change in the short run producing larger quantities of a good or service generally requires more workersIf new manufacturers enter the computer industry, then (ceteris paribus): the supply curve shifts to the left. the supply curve shifts to the right. the demand curve shifts to the left. some established manufacturers must exit the industry