Cost curves shift if i. technology changes.
Ii) the prices of factors of production change.
Iii) productivity changes.
A) Only i
B) i and ii
C) Only ii
D) i and iii
E) i, ii and iii

Question

Quizplus · Accepted Answer

Cost curves can shift due to changes in technology, prices of factors of production, and productivity. Changes in technology can make production more efficient, reducing costs. Changes in the prices of inputs (factors of production) directly affect production costs. Improvements in productivity mean more output for the same input, also affecting costs.

Cost Curves Shift If I. Technology Changes