Question

Production costs are determined not only by the prices of inputs, but also by _______.

a. intangibles
c. competition
b. technology
d. consumer needs

Answer 1

The correct answer is: technology:

Some objects are not expensive in themselves, but their production is very costly (for example very thinly cut objects can be expensive even if their materials are not very expensive. The cost of their production depends on the technology used - whether this technology is costly.