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What effect does a rise in the cost of machinery or raw materials have on the cost of a good?
a) A rise in the cost of raw materials (but not machinery) raises the cost. 
b) The good becomes cheaper to produce.
c) The good becomes more expensive to produce.
d) It does not have any effect on the cost of the good.
2.

What does new technology generally do to production?
a) It lowers cost and decreases supply.
b) It lowers cost and increases supply.
c) It increases cost and decreases supply.
d) It has very little effect on production.
Could you please help me with these questions?

Verified Answer :

taskmasters

1.
With the rise in the cost of machinery or raw
materials, the good becomes more expensive to produce. So the correct option
for this question is option “c”. The cost of machinery and raw materials are
directly proportional to the increase in cost of any goods.


2.
The introduction or advent of new technology lowers
cost and increases supply. So for this question the correct option is “b”. New technology
always helps to increase the production with lowering of cost and that is the
reason behind adopting new technology.





adrianaflora738

Answer:

b) It lowers cost and increases supply.

Explanation:

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