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An improvement in production technology will:

a. Increase a firm's costs and increase its supply
b. increase a firm's costs and decrease its supply
c. decrease a firm's costs and increase its supply
d. decrease a firm's costs and decrease its supply

Respuesta :

Answer:

C- decrease a firm's costs and increase its supply

Explanation:

The improvement in production technology will increase the production while   average cost of production decreases. When average cost of production decreases, it is profitable for firms to sell more output, therefore, firms increase the production.