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Question
Due to installation of a machine with latest technology, the cost of production has decreased. It will lead to:
Options
Expansion in supply
Increase in supply
Contraction in supply
Decrease in supply
MCQ
Solution
Increase in supply
Explanation:
Because of the installation of a machine with cutting-edge technology, the cost of manufacturing has decreased, resulting in a rise in supply of the commodity, and the supply curve has shifted to the right.
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Aggregate Supply and Its Components
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