Question

What factors determine the cost of producing a good or service?  Check all that apply.

a The price of the good

b Technology

c Taxes

d The prices of resources used to make the good

Answer 1

Some of the important input factors that provided for production of goods and services are land, labour, capital and entrepreneurship

These are the main resources

So the prices of all these resources are important for making any goods or services

If we talk about the technology then it will decide the supply in the market because if the technology is high then cost of production will decrease and this will lead to higher supply

If taxes are there will be less supply in the market but they are not the important factors factors that are responsible for production of any good or service

So the only correct answer here is option D