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Technological Advances That Allow a Good to Be Produced at a Lower

question 189

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Technological advances that allow a good to be produced at a lower cost will shift the demand curve rightward.


Definitions:

Techniques of Production

The methods and processes used by firms to produce goods and services efficiently.

Price of Output

The amount of money that a firm receives from the sale of goods and services it produces.

Price of Inputs

The cost associated with the resources used in the production of goods and services.

Marginal Cost

The cost added by producing one extra item of a product.

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