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

a. The prices of resources used to make the good

b. Elements of nature and political disruptions

c. An excess of sales revenue

d. Technology

The factors that determine the cost of producing a good or a service are options (a) and (d)

Explanation:

Following factors determine the cost of producing a good or service:

The prices of resources used to make the good Technology

The prices of inputs used for producing the output is one of the most important constituents of cost of production. If price of inputs rises, that would raise the cost of production and vice versa.

Technology determines how efficiently goods are produced. An outdated technology would consume more inputs for the same level of output and thus would raise the cost of production. Similarly advanced machinery will reduce the cost of production.

Thus, the factors that determine the cost of producing a good or service are the prices of resources used to make the good and technology.