If the Cost of Producing a Product Goes Down,this Will

question 178

True/False

If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

---

Definitions:

Comparative Advantage

The ability of a person or a country to produce a particular good or service at a lower opportunity cost than others.

Total Production

The total amount of goods and services produced by a company or country over a specific period.

Specialization

The process of focusing on and becoming expert in a particular subject or skill.

Pauper Labor Fallacy

The mistaken belief that importing goods from countries with low wages hurts the economy of high-wage countries.