If a new production process is developed that allows firms to produce the same output with fewer inputs,then the prices of the inputs ________.
A) will rise due to increased supply of the inputs
B) may rise due to increased production by existing firms and new firms' entry
C) will fall due to increased demand for the inputs
D) may fall due to decreased production by existing firms and/or exit

Question

Quizplus · Accepted Answer

The Answer of If a new production process is developed that allows firms to produce the same output with fewer inputs,then the prices of the inputs ________.
A) will rise due to increased supply of the inputs
B) may rise due to increased production by existing firms and new firms' entry
C) will fall due to increased demand for the inputs
D) may fall due to decreased production by existing firms and/or exit

If a New Production Process Is Developed That Allows Firms