A decline in production costs
A) reduces the amount of output produced.
B) increases the opportunity cost of doing business.
C) reduces the opportunity cost of doing business.
D) reduces business profits.
E) increases business revenues.

Question

Quizplus · Accepted Answer

A decline in production costs reduces the opportunity cost of doing business, as less resources need to be given up in order to produce the same amount of output. This can lead to higher profits or the ability to lower prices and increase sales.

A Decline in Production Costs