Final answer:
A company's decision on input substitution is influenced by the availability and cost of substitute inputs, technological advancements, and government regulations, leading to the correct answer being 'all of the above'.
Step-by-step explanation:
The influences on a company's input substitution decision are considerable and can involve various factors that affect the supply of goods. These influences include:
- Availability of substitute inputs - If there are readily available alternatives for a company's current inputs, it might consider switching to these substitutes.
- Cost of substitute inputs - A company will evaluate the price of substitutes. If they are less expensive and maintain the same level of quality and productivity, they could present a more cost-effective option.
- Technological advancements - New technologies can change the way input materials are used, possibly making substitutions more or less viable depending on the nature of the change.
- Government regulations - Policies set out by the government can greatly impact the cost of production. Regulations may require the adoption of new inputs or make existing ones more expensive or difficult to source, forcing companies to seek out alternatives.
Each of these factors plays a role in a firm’s decision-making process when it comes to alternative inputs and their impact on the cost of production. Based on these considerations, all of the above are correct when referring to influences on a company's input substitution decision.