In a perfectly competitive market, what effect does a decrease in production costs have on the supply curve?

In a perfectly competitive market, a decrease in production costs means that it becomes cheaper for companies to make their products. When production costs go down, businesses can produce more goods at the same price or keep their prices the same while making higher profits. This change causes the supply curve to shift to the right, indicating that more products are available at every price level. For example, if a bakery finds a cheaper way to buy flour, it can bake more bread without raising prices, leading to more bread being sold in the market. Overall, this increase in supply helps meet consumer demand more effectively.