When a Firm Adopts New Technology, Generally Its

question 37

Multiple Choice

When a firm adopts new technology, generally its

• A) cost curves are unaffected.
• B) cost curves shift upward.
• C) production permanently decreases.
• D) supply curve shifts leftward.
• E) cost curves shift downward.

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Definitions:

Revealed Preferences

The theory that consumers' preferences can be determined by their purchasing habits and behavior rather than through their expressed desires or responses to surveys.

Preferences

The subjective tastes or desires of individuals or entities, which determine their choices among various options.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, contrasting with normal goods.

Price Increase

A rise in the cost of goods or services.