mdcat logical reasoning MCQ #36

A technological innovation improves manufacturing efficiency. What is a probable effect on production costs?

mdcat logical reasoning MCQ #36

  1. Question 1

    Q1. A technological innovation improves manufacturing efficiency. What is a probable effect on production costs?

    • A) Increased costs
    • B) Reduced costs
    • C) Unchanged costs
    • D) Variable costs

    Answer: Reduced costs

    Explanation: Improved efficiency typically reduces production costs. Increased costs would be counterintuitive. USAT, HAT and MDCAT analytical sections repeat this pattern.