How a Technological Advance Shifts Cost Question (Check Work)?

Question

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My Thoughts: I believe it's C because it shifts the total cost in a situation like this. However, I'm not completely sure.

Answer 1

In my opinion Option "1" and "2" both are correct due to following reasons:

1. When Technology advances then we can able to produce same quantity at lower cost.

2. When technology advances then we can able to produce more quantity at same cost.

Answer 2

B. I

Only B is right - but option II is wrong because it's just means extensive use of capital. "B" will mean that producer have less costs at any level of production.