What effect does improved technology typically have on input costs?

Improved technology generally leads to a decrease in input costs. This is because advancements in technology often result in more efficient production processes, automation, and optimized resource use. When companies adopt new technologies, they can produce goods and services faster and with less waste, which directly contributes to reduced costs of inputs such as labor, materials, and energy.

For instance, better machinery can enhance production speed and quality, thereby lowering the cost per unit of output. Additionally, technology can facilitate remote monitoring and control of production, further improving efficiency and reducing the need for manual intervention, which translates into savings on labor costs.

Overall, as technology enhances productivity and efficiency, it generally drives down the costs incurred in the production process, making the correct answer to this question a decrease in costs.