A change in production costs may occur for any of the following reasons except when
A)new production technology is introduced.
B)a new, cheaper, rival product is introduced.
C)the price of an input falls.
D)demand of other industries for a key input increases.
E)the use of cost savings management is introduced.

Question

Quizplus · Accepted Answer

A change in production costs occurs due to changes in the cost of inputs, such as labor, capital, raw materials, energy, etc. Option B is the only choice that does not involve any changes in production costs.

A Change in Production Costs May Occur for Any of the Following