Question

When producers do not have to pay the full cost of producing a product, they tend to?

1) Increase production
2) Decrease production
3) Maintain the same level of production
4) Stop production

Answer 1

When producers do not have to pay the full cost of producing a product, they tend to increase production.

Step-by-step explanation:

When producers do not have to pay the full cost of producing a product, they tend to increase production. This is because when costs are lower, producers can make higher profits by producing more units of the product. For example, if a new technology reduces the cost of production, producers can produce more units and still make a profit.