A Technological Advance Occurs in a Perfectly Competitive Market

question 56

Multiple Choice

A technological advance occurs in a perfectly competitive market.Which of the following statements is incorrect?

• A)All old-technology firms exit in the long run.
• B)In the long run,all firms make zero economic profit.
• C)The technological advance brings permanent gains to producers and temporary gains to consumers.
• D)As more firms begin to use the new technology,market supply increases.
• E)As more firms begin to use the new technology,the market price falls.

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Definitions:

Inevitable

A situation or event that is certain to happen and cannot be avoided or prevented.

Organizational Unit

A specific department, division, or group within an organization, often defined by function or role.

Leader Behavior

Refers to the actions and conduct exhibited by a leader, influencing the group or organization's performance and culture.

Path-goal Theory

A leadership theory that suggests the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure their goals are compatible with the organization's.