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

A firm's cost of production is primarily affected by changes in the available technology and input prices. Profit is the result of the difference between revenues and costs, but it does not directly affect the cost of production. Therefore, option E is incorrect as it includes profits as a factor affecting production costs. Option A and B are correct as changes in technology and input prices can significantly impact the cost of production of a firm.

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