Answer:
True.
Explanation:
The statement is true.
Cost of the factors of production is one of the main component of supply.
If there is an increase in the cost of production of a particular good then as a result the supply of that good decreases and this will shift the supply curve leftwards.
This is only because of the fall in the level of profits due to the higher cost of production. Therefore, the expensive factors of production induces firms to produce less.
