Technological advance improves productive efficiency by
A) lowering average total cost.
B) increasing marginal utility.
C) enhancing monopoly power.
D) giving society a more-preferred mix of goods and services.

Question

Quizplus · Accepted Answer

Technological advance typically leads to lower average total cost because it allows firms to produce the same output with fewer inputs or in less time. This leads to a more efficient production process and lower costs, which can then be passed on to consumers in the form of lower prices or higher quality products.

Technological Advance Improves Productive Efficiency by