If an Improvement in Production Technology Causes a Decrease in Production

question 86

Multiple Choice

If an improvement in production technology causes a decrease in production costs,the result is a(n)

• A) decrease in quantity supplied
• B) increase in demand
• C) increase in supply
• D) improvement is working conditions
• E) increase in quantity supplied

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Definitions:

Marginal Revenue

The augmented income obtained by selling one more unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of output.

Competitive Market

A market structure characterized by a large number of buyers and sellers, such that no single participant can significantly influence price.

Marginal Cost

The increase in cost that arises from producing an additional unit of output.