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Due to installation of a machine with latest technology, the cost of production has decreased. It will lead to:
Expansion in supply
Increase in supply
Contraction in supply
Decrease in supply
Option (2) is correct. Explanation: Due to installation of a machine with latest technology, there is fall in cost of production which has led to increase in supply of the commodity and hence supply curve shifts to the right.
By: Parvesh Mehta ProfileResourcesReport error
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