Assume a New Technology Further Reduces the Cost of Producing

question 67

Multiple Choice

Assume a new technology further reduces the cost of producing calculators.Also assume that consumers have cut back on their scheduled purchases in anticipation of even more cost-saving developments.As a result, we can expect

• A)a decrease in price but no predictable change in output.
• B)a decrease in output but no predictable change in price.
• C)an increase in output but no predictable change in price.
• D)a predictable decrease in both output and price.

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United Kingdom

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Income Statement

A financial document summarizing a company's revenues, expenses, and profit over a specific period, typically quarterly or annually.

Financing Activities

Transactions and events where cash is raised or repaid to finance the company, including debt, equity, and dividend payments.