An improvement in production technology will: An improvement in production techn

Question

An improvement in production technology will:

An improvement in production technology will: Increase a firm's costs and increase its supply increase a firm's costs and decrease its supply decrease a firm's costs and increase its supply decrease a firm's costs and decrease its supply Both Bill and Mary produce t-shirts and hats. If Bill's opportunity cost of 1 t-shirt is 4 hats and Mary's opportunity cost of 1 t-shirt is 3 hats, then Bill has a comparative advantage in the production of t-shirts. Mary has a comparative advantage in the production of t-shirts. Mary has a comparative advantage in the production of hats. Bill has a comparative advantage in the production of both t-shirts and hats. The movement from D' to D in the market for potato chips could be caused by decrease in the price of potato chips. decrease in income, assuming that potato chips are a normal good. announcement by the FDA that potato chips cause cancer. increase in the price of a pretzels.

Explanation / Answer

1)ans:3)decrease a firm's costs and increase its supply

2)Mary has a comparative advantage in the production of t shirts.

3)increase in the price of a pretzels

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