Technological Change Allows Perfectly Competitive Firms to ________ and Leads

question 44

Multiple Choice

Technological change allows perfectly competitive firms to ________ and leads to ________.

• A) lower their costs; lower prices for consumers
• B) raise their prices; higher prices for consumers
• C) lower their costs; deadweight loss
• D) raise their costs; higher prices and maximum profits in the long run
• E) lower their costs; higher prices so the firms can earn economic profits in the long run

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Definitions:

Brand Loyalty

A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Substitute Products

Goods and services that can be used in place of each other based on their utility and functional qualities.