Which One of the Following Is Not True of a New

question 34

Multiple Choice

Which one of the following is not true of a new long-run equilibrium which is the result of a new technology in a perfectly competitive market?

• A)The equilibrium price falls.
• B)Industry output increases.
• C)Economic profit of each firm remaining in the industry increases.
• D)All firms in the industry use the new technology.
• E)Average total cost decreases.

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Definitions:

Incentive

A factor, either monetary or non-monetary, that motivates individuals or firms to act in a certain way.

Plant Manager

An individual responsible for overseeing all aspects of operations, including production, staffing, and quality control, within a manufacturing facility.

Fixed Wage

A set amount of compensation paid to employees, consistent across pay periods, regardless of hours worked or performance levels.

Individual Worker

Pertains to a single employee or laborer considered independently within an economic model, focusing on their productivity, wage, or employment conditions.