There Is a Technological Advance in a Perfectly Market

question 337

Multiple Choice

There is a technological advance in a perfectly market. Which of the following statements is NOT true?

• A) As more firms begin to use the new technology, the market supply increases and the price falls.
• B) Technological change brings permanent gains to producers and temporary gains to consumers.
• C) In the new long-run equilibrium, all the old-technology firms have exited.
• D) In the long-run equilibrium, competition eliminates any short-run economic profit.

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Definitions:

Large-scale Change

Significant modifications in organizational processes, practices, or structures, aiming to achieve a substantial improvement in performance.

Initiated

The state of having begun or started something, often referring to projects, actions, or processes.

Top Management

The highest level of executives in an organization, including titles such as CEO, CFO, and others, responsible for overall strategy and policy.

Challenging Yet Believable

Tasks or goals that are difficult and stretch abilities but still within the realm of achievability.