Question

Statement 1: Producers benefit from improved and advance technology.

Statement 2: Improved technology reduces the cost of production.

Options

• Statement 1 is true and Statement 2 is false.

• Statement 1 is false and Statement 2 is true.

• Both statements 1 and 2 are true.

• Both statements 1 and 2 are false.

Answer 1

Both statements 1 and 2 are true.

Explanation:

• Statement 1: Producers benefit directly from technological advances since better procedures make production faster, more reliable, and more efficient.
• Statement 2: Advanced technology reduces the per-unit cost for production by reducing resource waste, increasing labour productivity, and lowering operating expenses.