A firm's cost of production is affected by changes in
A) the available technology.
B) input prices.
C) profits.
D) both a and b
E) both b and c

Question

Quizplus · Accepted Answer

The firm's cost of production is affected by both the available technology and input prices. Changes in available technology can affect the efficiency of the production process, which can lead to changes in the cost of production. Input prices, such as the cost of raw materials and labor, also have a direct impact on the cost of production. Profits, on the other hand, are not a direct factor in the cost of production as they come after the costs are calculated. Therefore, options A, B, and E are partially correct, but only option D includes all the correct factors.

A Firm's Cost of Production Is Affected by Changes in