Advances in productivity increase supply because they might
A) increase the price expected in the future.
B) decrease the number of goods available.
C) decrease the cost of production.
D) raise the prices of resources used to produce the good.
E) increase the number of firms producing the good.

Question

Quizplus · Accepted Answer

Advances in productivity typically decrease the cost of production, allowing firms to produce more output with the same amount of resources. This leads to an increase in supply as the firms are now able to offer more goods at a lower cost.

Advances in Productivity Increase Supply Because They Might