Reduction in marginal cost due to technological advancement is to increased output as: A. Price competition is to decreased market share B. Higher fixed costs are to lower variable costs C. Improved efficiency is to higher production costs D. Increased demand is to higher prices

Reduction in marginal cost due to technological advancement leads to increased output because when it costs less to produce each additional unit, companies can make more products at a lower price. This is similar to how increased demand leads to higher prices; when more people want a product, companies can charge more for it. For example, if a factory uses new technology that lowers the cost of making shoes, it can produce more shoes and sell them at a competitive price. In both cases, whether it's lowering costs or increasing demand, the result is a change in how much is produced and sold in the market. Therefore, the best comparison is that increased demand is to higher prices, just as reduced marginal costs are to increased output.