Advances in production technology typically reduce firms' costs, which increases the quantity supplied at each price.

Question

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Advances in production technology often make the production process more efficient, reducing the cost of producing each unit of a good. This reduction in costs enables firms to supply more of the good at each price level, as they can now produce and sell at lower costs while maintaining or increasing their profit margins.

Advances in Production Technology Typically Reduce Firms' Costs, Which Increases