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If There Is an Improvement in the Technology of Producing

question 205

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If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the left.


Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales volume.

Average Total Cost

The average cost of producing one unit, determined by dividing the total production expenses by the quantity of products made.

Fixed Cost

Expenses that do not change as a function of the activity of a business, within the relevant period.

Marginal Cost

The cost of producing one additional unit of a product.

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