Question

Factory has machines which are expensive. Then, how can it produce goods that are cheaper than those products by hand?

Answer 1

Answer:

Yes ,they can

Explanation:

Cost of product depends on three factors:

1) Materials used

2) Shiping or manufacturing

3) Labour

Now machones come under category of labour,but the material used and shipping and manufacturing costs can be cut down.Moreover, Human labour can be expensive since the trainning,salary hikes etc are not needed for machines. Regular maintainence of machine is enough. HenceFactory has machines which are expensive. but can tproduce goods that are cheaper than those products by hand.