The choice of how much to produce depends on a variety of factors. One of the most important factors is the cost of production. Two very important components of the cost of production are resource (input) prices and technology. What happens to the supply curve if the costs of production because resource prices have and available technology has made production ? This change in costs causes supply to ▼ remain unchanged increase decrease . This is seen graphically as ▼ a leftward no a rightward shift in the supply curve.

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."