An Improvement in Technology

question 170

Multiple Choice

An improvement in technology

• A) is one way to shift the demand curve.
• B) always increases producers' profits.
• C) allows a producer to decrease output with the same amount of input.
• D) allows a producer to increase output with the same amount of input.
• E) shifts the supply curve to the left.

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Definitions:

Cost of Goods Sold

The direct costs tied to the production of products sold by a company, including material and labor expenses.

Average Costs

The cost per unit calculated by dividing the total costs of production by the number of units produced.

Perpetual FIFO

An inventory management method where goods are sold in the order they are acquired, continuously updated to reflect sales and purchases.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company, including material and labor costs.